To this day, having this much capital tied up in one entity that has still to prove itself execution-wise is frustrating.
In the past few days however, the company has suprisingly announced three Memorandums of Understanding:
- with Telinno Consulting in Mali (West Africa) for 150 sites
- with Sierra Tel in Sierra Leone (West Africa) for 125 sites
- with MTN in South Sudan for 250 sites
The timelines for the definitive agreements are:
- Nov 15th, 2021 for the 1st and 3rd one
- August 15th, 2021 for the 2nd one.
Telinno Consulting Limited is the leading Telecoms Service Provider in West Africa. Sierra Tel is Sierra Leone’s only provider of land and mobile communications. MTN is an emerging market mobile operator providing services to more than 280 Million customers in 21 markets across Africa and the Middle East.
So that’s 3 MOUs with 3 different MNOs in 3 different countries. This decreases the likelihood that NuRAN is one-trick pony. Moreover, we should see at least one of these MOUs convert to a signed contract before the end of the year.
The bull case scenario is having all of them convert plus some towers being built in DRC.
For the record, here’s the incentive structure for Francis (the CEO):
While this is not perfect (I would have hoped for a bigger weight on revenue and EBITDA), it still gives him a serious incentive to sign new contracts with new MNOs and in new countries as well as build sites and generate revenues from them.
My stance now is to wait and see. While the MOUs are not huge in term of number of sites, getting more contracts would help legitimize the company and the stock.