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Mobilicom Limited (ASX:MOB) announced today, on 29th April 2019, that it has received new purchase orders exceeding $200,000 from Nippon Telegraph & Telephone Corporation (NTT), a Japanese telecommunications giant. NTT also noted their expectations to place multiple orders per year. Mobilicom will provide kits, with ~10 of its MCU products in each kit, serving the SDF (Japanese Self Defense Forces), comprised of ground, naval and air divisions for disaster relief initiatives. The development will provide the MOB with a large potential sales magnitude with NTT. The order from NTT signals the ongoing deployments of Mobile MESH networks using MOBâs MCU products. MOBâs solution is designed for quick deployment by NTT in challenging environments, helping mobile teams and platforms with broadband video and data sharing for first responders and homeland security operations. The kit can be used within vehicles, mobile command posts, trees and masts to initiate a private dialogue in a secured manner. The management considers this development as an achievement by selling these kits to NTT for its ongoing initiative with the SDF after a rigorous testing and demonstration process with NTT. Management is embarking on an effort to extend this across the various SDF units throughout Japan, therefore multiplying sales numbers of these kits as an ongoing business.
Mobilicom Limited also released its Quarterly Activities Report for 1Q 2019, stating the total cash receipts from customers, grants and interest at $736,000 for 1Q 2019. MOB completed the first quarter with a backlog of $363,000 for immediate delivery in 2Q 2019. Total grants from the government came in at $170,000 for 1Q 2019. The cash balance as on 1Q 2019 stood at $3,940,000, which was recorded prior to the subsequent capital raising, following which, the cash balance came in at $8 million.
Looking at the operational highlights, MOB began 2019 with several pivotal achievements.
MOB entered into a key strategic partnership with Yuneec, a global leader in drones and electric aviation, produces >1 million product per year. Yuneec will release two drone solutions based on the SkyHopper product portfolio, targeted at the commercial and government markets. The partnership is likely to have an impact on sales beginning this year with SkyHopper solution offered by Yuneec to be commercially available from mid-2019.
MOB received an additional order from Israel Ministry of Defence of $572,000 for its commercial drone upgrade solution. An R&D program worth $1,800,000 was also approved by the Israel Innovation Authority and Israel Ministry of Defense, which is related to the development of Cyber Security using AI (Artificial Intelligence) for robotics and drones platforms. This underpins the MOBâs reputation as a complete provider of solutions for drones and robotics, strengthening its cash flow performance and long-term financial position.
In the month of April, MOB updated that it had completed the $3.725 million placement of new shares to accelerate its expansion opportunities with key strategic partners. The company issued 37.25 million ordinary new shares, conducted at $0.10 per share, a 32% discount to the 5-day VWAP of $0.146 and a 6.5% discount to the 15-day VWAP of $0.107. The capital raised will be used for several large projects being undertaken by MOB with the key partners like Airbus, Yuneec and the Israel Innovation Authority. The funds will also be available for business development of MOBâs new drone upgrade solution, operating costs, R&D and general marketing and sales.
The group also released the report stating that its AGM will be held at 5 PM AEST on Thursday, 30th May 2019. At market close on 29 April 2019, the stock of MOB was trading at a price of $0.105, up 5% with a market cap of $21.76 million.
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