FCT - Firstwave Cloud Technology

[System]

Tellus Resources Ltd. (TLU) is a mineral exploration company established for the purpose of acquiring, exploring and developing prospective mineral deposits, particularly gold.

Tellus has six exploration tenements in regional New South Wales, all located in areas of historic goldfields, but with relatively little in the way of modern exploration activity.

The New England Tenements, which cover a total area under lease of approximately 205 square kilometres, are in an area of historic goldfields last mined in the late 1800’s. This area is prospective for intrusive related gold deposits and remains largely untested by modern exploration techniques.

The Southeast Lachlan Tenements, which cover a total area under lease of approximately 753 square kilometres, are situated in the area that was the focus of the NSW Government’s "New Frontiers" initiative of 2010, which will provide high resolution geophysical maps of the area. Tellus will be able to take advantage of this data to deliver a focused exploration program.

http://www.tellusresources.com.au

 

[springhill]

Re: TLU - Tellus Resources

MC - $4.5m
SP - 13.5c
Shares - 34m
Options - NQ
Cash - $3.6m

Top 20 - 51%

JUNE QUARTER HIGHLIGHTS
• Finalisation of the purchase of the Chillagoe Project
• Over 30 years of exploration data compiled from hard copy into a coherent digital database
• Development of robust IRG geological model for mineralisation
• Mobilisation of field team and setup of field base in Chillagoe
• 2,688m of RC drilling completed at Chillagoe to test previous intersections and newly conceived geological model
• Two (2) EPM applications consolidating the Chillagoe ground position increasing total tenement size to 29,359 hectares

Projects & Exploration
During the June quarter the Company has focused on:
• validation and compilation of previous drilling into a digital database;
• creation of a robust geological model to explain the significant gold and gold‐silver intersected by previous explorers;
• mobilisation of field crews and setup of a field base in Chillagoe; and
• Tellus' first drilling program at the Chillagoe Gold Project designed to confirm positions and grades of the existing gold and gold‐silver intersections at Wandoo and Empire.
No exploration was completed on the NSW Projects in the June quarter.

Chillagoe Gold Project, QLD
RC drilling started on the 22nd May 2012, focused on proving up and confirming the previously defined
‘discovery’ intersections from the approximately 30 years of previous drilling.
By the end of the quarter a total of fifteen (15) RC holes for 2,688m were completed at the Chillagoe Gold Project.
Thirteen (13) holes were drilled within the Empire mining lease (ML20380), ten (10) at the Empire Prospect and
three (3) at the Pinnacles Prospect.
Two (2) holes were completed at the Bayley’s Prospect within the Mt Wandoo mining lease (ML5130).
All results are expected during the September 2012 quarter.

Empire Mining Lease ML20380 ‐ 100%
Ten (10) RC holes were drilled around the margins of the Empire Breccia System, seven (7) following up the
previous gold drillhole intercepts, and three (3) following up significant surface quartz veining on the margins of
an outcropping intrusion.
Three (3) RC holes for 456m were drilled at Pinnacles, testing a strong soil gold anomaly coincident with the
margins of an outcropping intrusion.
All samples have been submitted to the laboratory and results are expected during the September 2012 quarter.

Wandoo Mining Leases ML5130, ML20381 and ML20234
Drilling at Wandoo continued into the September quarter.
Two (2) RC were drilled at Wandoo during the quarter following up previous explorers gold‐silver intersections at
Bayley’s.
All samples have been submitted to the laboratory and results are expected in the September 2012
quarter.

 

[System]

Re: CRX - Crestal Petroleum

On February 19th, 2015, Tellus Resources Limited (TLU) changed its name and ASX code to Crestal Petroleum Limited (CRX).

 

[System]

On May 10th, 2016, Crestal Petroleum Limited (CRX) changed its name and ASX code to Firstwave Cloud Technology (FCT).

 

[greggles]

Firstwave Cloud Technology taking off over the last couple of days after announcing yesterday that it has signed a software OEM development and license agreement with Cisco Systems, Inc. to offer Cisco's global customers First Wave's unique cloud service orchestration platform for differentiated email, next generation firewall and web security.

The company said that their proprietary platform technology is a "turnkey" solution for global service providers to deliver new enterprise-grade cloud security services to their customers.

No mention of the kind of revenue the company can expect to see generated as a result of the agreement, but the market clearly expects it to be significant due to Cisco's size and global reach.

FCT heading toward 12 month highs of 40c. Nice gains over the last couple of days.

 

[Dona Ferentes]

looking like a cyberdud? Not even Covid (Remote Worker Cyber Security product launched nearly a year ago) could do much.

Plenty of capital raises along the way: $7.5M in March 2019, $7M in Sept 2019, more than $15M in May 2020

There are multiple factors influencing FirstWave’s performance including:
1. Domestic - as previously advised, churn due to the end of life of a Cisco web solution impacted Domestic revenues through H1 as reflected in the comparative PCP numbers above;
2. FirstCloudTM WebProtectDNS – sales of this new offering from FirstWave’s Technology Partner Simplifyd Systems UK have shown strong early growth which, on indications from our Partners, is expected to continue;
3. COVID-19 – continues to impact international sales particularly in the UK and Europe as highlighted in FirstWave’s H1 results announcement. Sales teams of some of FirstWave’s international partners remain effectively, or actually, furloughed, making it challenging to forecast growth;
4. Cisco – opportunities with Cisco remain significant and revenues continue to grow but at rates that are slower than expected; and
5. Telstra – FirstWave’s Product and Services Agreement (PSA) has been extended for a further 12 months. Billing arrangements have been brought in line with normal trading terms (rather than paid 12 months in advance) which will have a short-term impact on monthly cash balances but is expected to ‘wash-through’ by December ’21.

 

[Dona Ferentes]

and then there is this ticking clock, between FCT and Cisco:

• OEM Agreement signed in July 2018 for initial term of five years with option to renew
• Discussions underway to evolve the relationship to enable FCT to engage directly with Cisco customers, partners and account teams
• Both parties frustrated by revenue growth rate to date
• FCT responsible for engineering and development, Cisco responsible for business development, sales, marketing and revenue turn on
• If discussions conclude in line with current indications, FirstWave expects an improvement on the current situation

I suspect more in hanging on it for FCT than Cisco.

 

[Dona Ferentes]

in their latest webinar 08/09, the enthusiastic team at FirstWave spoke of being at a point of inflection for the coming year. In 3Q22 ... but better to be 6 months early than 6 minutes late.

And perhaps more importantly:
- most SMB enterprises get a hodge podge of measures
- growth is coming from International
- they speak of an Opt Out of product, being instructive
- the offer is to SMBs needing the whole raft of cybersecurity measures, through a range of big players (Cisco, Palo Alto, etc)

• Email Security
• Web Security
• Firewall Security
• Endpoint Security
• Web DNS Security
• ADR : electronic and physical services including intrusion, fire and life safety, access control, video surveillance, and intercom systems.

my pick for Oct comp. now 7.0c

 

[Dona Ferentes]

FirstWave, the Australian global cybersecurity technology company, advises that it will launch CyberCision, the most transformational technology upgrade in its history, at 10.30am (AEDT) on Wednesday 27 October.

For the virtual launch event, FirstWave’s Executive Chairman John Grant will be joined by Chief Technology Officer Simon Ryan, Chief Product Officer Roger Carvosso and independent technology advisor Kevin Bloch, with presentations from leading global cybersecurity analysts Frost & Sullivan and some of FirstWave’s global Partners. The launch of CyberCision, the next evolution of FirstWave’s Cloud Content Security Platform (CCSP), is a watershed moment for FirstWave, its Partners and shareholders.

By significantly enhancing the functionality and ease of adoption of FirstWave’s cybersecurity platform, CyberCision will enable FirstWave’s Partners, which include some of the world’s largest telcos, ISPs and service providers, to provide best-in-class cybersecurity technologies to protect their vulnerable SMB customers from cyber-attack, while rapidly growing their cybersecurity services revenues at scale.

clunky name. If it is "opt out" it may get some traction. (... & has until the Friday to save my Oct Comp entry !)

 

[Dona Ferentes]

FirstWave, the Australian global cybersecurity technology company, advises that it will launch CyberCision, the most transformational technology upgrade in its history, at 10.30am (AEDT) on Wednesday 27 October.

and that was a Non Market Sensitive announcement at 1:28 yesterday

Only about 1:40pm this afternoon was there any buying, at 7.5c .... and by closing time, finished at 9.3c up 26%

(This one I hold, bought two weeks ago)

 

[Dona Ferentes]

and that was a Non Market Sensitive announcement at 1:28 yesterday

Only about 1:40pm this afternoon was there any buying, at 7.5c .... and by closing time, finished at 9.3c up 26%

(This one I hold, bought two weeks ago)

open for one minute this Monday morning, traded up at 9.4c .... and now in a Trading Halt pending an announcement

 

[Dona Ferentes]

and down: lost the earlier gains, now around 8.0c

..... the Company received two unrelated requests concerning the terms of FirstWave’s resale of Simplifyd Systems’ web security service, WebProtectDNS. Specifically, the terms require payment from FirstWave’s partners in advance of them receiving revenue from end users.

Both companies, based in Kenya, requested a pause in invoicing; one until it solves technical problems their end, and the other unwilling to remit to FCT until they get paid by their end users.

After careful consideration of its options, the Company agreed to pause the contracts, accept the revised terms in principle and finalise the details with the customers.

 

[barney]

Both companies, based in Kenya, requested a pause in invoicing; one until it solves technical problems their end, and the other unwilling to remit to FCT until they get paid by their end users.

A lot of Volume on today's inside/down bar as well .... not really a good look DF?

 

[Dona Ferentes]

Yeah nah. B at 7.3c. sold out in the middle of the muddle at 8.0c

I'll take it.

 

[Dona Ferentes]

what a hard one to predict (or not?)

FCT has risen steadily since the previous kerfuffle all of a week ago, putting on 50% to climb to 10.5c
The market wanted to believe, Buy On Rumour, Sell On Fact, it would appear. Today the CyberCision details were announced, also non Market Sensitive, and a detailed Q&A held, and there has been a noticeable rush to the exits. Now 9c again (and taking out my Oct comp chances)

• CyberCision significantly enhances functionality and ease of adoption of FirstWave's platform for FirstWave’s Partners, which include some of the world’s largest telcos and MSPs
• Enables Partners to provide best-in-class cybersecurity technologies from leading global vendors including Cisco, Trend Micro, Palo Alto and WatchGuard to protect their vulnerable SMB customers from cyber-attack, while rapidly growing cybersecurity services revenues at scale
• Confirmed as the only platform of its kind globally by leading market analysts Frost & Sullivan
• Expected to significantly increase uptake and revenue for FirstWave

Which was all pretty well understood. Now they have to get out there and sell the thing.

Probably not helpful was a descriptor of V1.0 which wasn't getting far:

What is preventing widespread adoption of FirstWave’s platform?
• “It’s too hard to turn on”
• “It’s too complex”
• “I can’t sell multiple products or bundles”
• “I can’t launch offers in a SaaS marketplace”
• “I can’t on-board/activate without friction”
• “I can’t provide reporting to end customers”
• “I can’t manage bills, invoices & payments”
• “I can’t scale to serve many resellers & customers”

 

[Dona Ferentes]

Trading Halt pending an announcement in relation to a material acquisition and capital raise;

 

[Dona Ferentes]

the usual dribble of info to the financial press:

ASX-listed cybersecurity play FirstWave Cloud Technology has agreed an all-scrip deal to acquire network management and IT audit software provider Opmantek, and is asking investors to help fund associated costs.

The Opmantek acquisition .... would see FirstWave issue up to 691 million new shares as consideration worth about $60 million as at the company’s last close.
FirstWave told investors that Opmantek made $4 million revenue and $800,000 EBITDA in the year to June 30, from the sale of its enterprise grade software to telcos and managed service providers. Opmantek was established in 2011, based in Australia with offices in the US and Mexico and had 26 full time employees.

Putting the two together, according to FirstWave, would create an “end-to-end solution for network discovery, management and cybersecurity”. It would just about double FirstWave’s shares on issue. The combined company would have had $12 million revenue in the 2021 financial year, on a proforma basis, and enough cash to reach cashflow breakeven, it told potential investors.

FirstWave was seeking to raise $7 million at 7¢ a share to help pay associated transaction costs and repay a $1.5 million Opmantek loan.

 

[Dona Ferentes]

Capital raising of $14m is to be raised under the Offer via:
- Two Tranche Placement of approximately 100m shares (representing approximately 13% of issued capital) to institutional and sophisticated investors to raise approximately $7.0m. The Placement will consist of two tranches, tranche 1 will be approximately 40 million ordinary shares ($2.8m) , while tranche 2 will be approximately 60 million ordinary shares ($4.2m)
- A 3 for 23 Non-Renounceable Entitlement Offer of approximately 100m shares to existing shareholders as of the Record Date to raise approximately $7.0m

• Offer Price of $0.07 per new share

• Transaction costs $4.0m (cash consideration $1.3m, advisory, underwriting and other transaction costs $2.7m)
• Repayment of Opmantek loan $1.5m
• Integration costs $1.2m
• Working capital $7.3m expected to fully fund the combined business to cashflow break-even

 

[Dona Ferentes]

and, a shuffle, kerfuffle. Wasn't that an all-scrip offer, and now the new guy gets the job? Not a vote of confidence in the old team.


Danny Maher has been appointed Chief Executive Officer ; Mr Maher will join FCT on 10 January 2022 and assume the role immediately taking over from the Executive Chairman and interim CEO, Mr John Grant, who will continue as Chairman in a non executive capacity.

Mr Maher has over 25 years experience In the IT Industry across the USA, Asia, UK and Australian markets. Other key achievements include:

• Established Opmantek, a developer of cloud enabled automated enterprise network management and IT audit software, on 29th October 2010. Opmantek operates offices in Australia, the US and Mexico, with software being used around the world by mid market and enterprise customers that include Microsoft, Telmex, NASA and Singtel.
• Mr Maher, ING Bank and Allen & Buckeridge venture partners were the 100% owners of NetStar, which was acquired by Logicalis in 2010. At NetStar, Mr. Maher co founded, led and built the global Managed Services business in Sydney, Australia growing it to service clients in 42 countries.
• Mr Maher is a graduate of the University of Canberra where he studied a double major in Computing and a minor in Marketing, and won the prestigious University Prize.

 

[Dona Ferentes]

FCT announces the completion of the most recent stage of its organisational restructure following its acquisition of Opmantek Limited .

Under the leadership of new Chief Executive Officer, Danny Maher, FirstWave continues to optimise its organisational structure and materially reduce its cost base to achieve the financial synergies made possible by combining both companies.

The most recent round of restructuring has taken total salary cost savings to approximately $5.5 million per annum for the combined business compared to the beginning of FY22. No further reduction in headcount is currently envisaged.

The restructure includes the appointment of San Francisco-based Craig Nelson, previously Opmantek CEO, as Head of Global Sales (CRO). This new global role will provide the platform for FirstWave to identify and execute growth initiatives globally with a strong focus on North America.

The restructure also includes the removal of the product management team with the responsibility for product management moving to the newly established digital marketing office led by the company’s Chief Marketing Officer.

FirstWave CEO, Danny Maher, said

“FirstWave remains focused on reducing our costs and growing our revenues. While it is never pleasant to farewell team members, we are committed to achieving the necessary cost reductions and the financial synergies made possible by our acquisition of Opmantek. The company now looks to the more pleasant objective of growing revenues while in parallel seeking further cost savings through reduction of 3rd party operational expenses....