PEB - Pacific Edge Ltd

[Drew95]

US sales $3.3M NZD 2019
US Sales $3.2M NZD 2018

To clarify, US billable test sales in 2019 were approx $11.8 million**, of which $3.3 million was collected in cash, and recognized as revenue in the books.

** (Lab throughput = 15697) x (Billable % = 82%) x ($NZD 1150 per test)*** x (US Market share = 80%) = $NZ 11.84 million

*** Note that $NZ1150 is the agreed rate for 50% of the US Market covered by CMS. Other institutions pay different rates. VA pays $2246 for example.

[Dentie]

Nothing magical is going to happen - PEB will need to do a cash issue and capital raising to survive.

Rather than a CR, perhaps they might look outside the traditional box and attain cash by securing it against the already completed (& owed) tests. (Ie factoring).

[Baa_Baa]

Rather than a CR, perhaps they might look outside the traditional box and attain cash by securing it against the already completed (& owed) tests. (Ie factoring).

Factoring is essentially a loan secured by an asset that has to be repaid plus interest. PEB potential revenue for completed tests would not meet any lending criteria imo.

[Balance]

Rather than a CR, perhaps they might look outside the traditional box and attain cash by securing it against the already completed (& owed) tests. (Ie factoring).

https://www.odt.co.nz/business/pacif...apital-raising

Good news! This will be the LAST capital raising!

Bad news! That was 4 years ago.

[Dentie]

Factoring is essentially a loan secured by an asset that has to be repaid plus interest. PEB potential revenue for completed tests would not meet any lending criteria imo.

Don't want to argue this point, however factoring is not a loan and the criteria is nothing like "lending criteria" and, while on the subject, either is Invoice Assignment. They are just different forms of cash flow financing techniques which are very popular. They are commonly misunderstood - even by Accountants and Lawyers - and, if used properly, are not necessarily expensive.

If they tried to get normal debt financing they would have to pay interest but, as you correctly mention, the lending criteria would exclude them (no tangible asset to lend against) unless a lender is happy to lend against Patents etc.

Do you think there wouldn't be a price to pay if they again go via the Equity road(CR)? I am sure existing shareholders love having their holding diluted....how does that compare with a bit of interest?

If I was DD, I would even explore exchanging a bit of cash for some of those juicy tax losses. He only needs to buy a bit more time...the wait appears to be going to be worth it.

[Baa_Baa]

Don't want to argue this point, however factoring is not a loan and the criteria is nothing like "lending criteria" and, while on the subject, either is Invoice Assignment. They are just different forms of cash flow financing techniques which are very popular. They are commonly misunderstood - even by Accountants and Lawyers - and, if used properly, are not necessarily expensive.

If they tried to get normal debt financing they would have to pay interest but, as you correctly mention, the lending criteria would exclude them (no tangible asset to lend against) unless a lender is happy to lend against Patents etc.

Do you think there wouldn't be a price to pay if they again go via the Equity road(CR)? I am sure existing shareholders love having their holding diluted....how does that compare with a bit of interest?

If I was DD, I would even explore exchanging a bit of cash for some of those juicy tax losses. He only needs to buy a bit more time...the wait appears to be going to be worth it.

As it happens I know enough about factoring to have tried to put it in plain English for the rest of the folks who are off to google what it is, which you agree is not really a path worth following to raise capital.

As a cashflow remedy, I don’t think it would work either as no lender would take the risk on the uncertainty of the receivables, they are not tangible enough (reliable) and there are no realistic assets backing to overcome this.

I would certainly not challenge your tax knowledge, in any event it seems inevitable that PEB will need a 29th capital injection (somehow) to keep the lights on.

Like some other stocks, I’d rather pay a lot more for the shares when they are able to do business profitably than park capital for no or negative return while risking it on a history of overly optimistic promises that have not come to fruition.

Patience, it might happen, then is the time to invest, imo. I don’t understand reputable investment houses backing such speculative companies, to such large amounts, without having been also caught in the hype and the sunk capital trap that PEB is, so far.

[Balance]

If I was DD, I would even explore exchanging a bit of cash for some of those juicy tax losses. He only needs to buy a bit more time...the wait appears to be going to be worth it.

Seriously if you have a tax efficient and IRD approved method of selling tax losses, let us know.

We will all become super wealthy!

[kiora]

Well put BB
Re using tax losses.
An entity that is making a lot of money could buy up < 50%,fold their operating assets in to PEB and use PEB tax losses.How about that for an option?
$120m in tax losses that are useable?
510,871,464 shares
Then PEB worth net $30m? Losses worth around 6 c /share?
Then what would PEB be worth?
May have to change their name?
May have to do something about the cash drain.
https://simplywall.st/stocks/nz/phar...e-now-down-74/

[Minerbarejet]

Anyone looking for this?

https://www.nccn.org/patients/guidel...ex.html#zoom=z

Excellent little booklet outlining the patient guidelines.

Page 39 for those under any illusions that the truth has not been stated.

Have a nice day

[Carpenterjoe]

Anyone looking for this?

https://www.nccn.org/patients/guidel...ex.html#zoom=z

Excellent little booklet outlining the patient guidelines.

Page 39 for those under any illusions that the truth has not been stated.

Have a nice day

Agree,

The booklet is fantastic.

The door is open for high quality bio markers to provide better testing, add quality of life and save taxpayers at least 30% on diagnostic procedures.

It is only more time now,
Lump sum payment is on the way,
Within 12 months medicare/caid paying,
Then lastly the lazy insurance companies who rufuse to reimburse non FDA approved tests,

Then let us expend.