(SeekingAlpha) IQT-News summarizes here a recent column in Seeking Alpha by Confounded Interest who works in the financial and property management industry for a well known, publicly traded “mini Berkshire” Insurance company. Confounded Interest notes he is not a licensed financial advisor and does not give out or publish investment advice. The Seeking Alpha article is his opinion only and are not solicitations, please seek guidance from a licensed financial advisor before investing in any security.
Summary:
–The key to this entire technology’s eventual adoption is that the algorithm used is already the global standard (AES), meaning that it is operable with current systems, giving users no logical reason to not adopt the technology.
–The technology Arqit invented is covered by over 1,400 patent claims making this company and its technology potentially protected from copycats looking to set up similar business models for some time to come.
–The commercial strategy also appears to be very well thought out, with the software downloaded by customers and used automatically. Billing events are created by usage via commercial customers with key creation events being metered.
Business development has been accomplished all in 2021, with only 2 dedicated salespeople, one being the CEO himself. To land executed, recurring and framework contracts with the likes of the British Government, British Telecom (OTCPK:BTGOF), Sumitomo Corporation (OTCPK:SSUMF) ESA and Dentons in addition to an “unnamed” major payment network, Northrop Grumman (NOC), Iridium (IRDM), Verizon (VZ) and BP (BP) accomplished pre hard rollout is impressive and gives credibility to the massive potential ahead for the company. The company has expended basically zero sales effort to date, has secured $130 million in guaranteed revenues from A list customers with a high probability of closing a $1.1 billion backlog pipeline already.
Counter to many of the recent SPAC IPOs, that dilution should not be an issue going forward. In the SPAC transaction, the company has received $376 million in cash to the balance sheet, to which the CEO recently commented that the deal brought it “twice the money that we need to fully fund our business” and that “We don’t need to raise any more money, ever,” he told CNBC.
Disclosure: (ConfoundedInterest) has a beneficial long position in the shares of ARQQ, GOOGL, HON, BTC-USD, ETH-USD either through stock ownership, options, or other derivatives. ConfoundedInterest goes on to report, “I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.”
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