NuRan Issues Bold Guidance For 2024/5 While Cutting Costs Over Lack Of Funding
NuRan Wireless (CSE: NUR) is sending mixed signals to the market this morning, providing guidance for 2024 and 2025, while at the same time highlighting certain near-term financing difficulties.
Gross revenue for 2024 is currently guided to hit US$20 million for the telecom company, a sharp increase from the C$4.9 million exhibited in 2022. Revenues in 2025 meanwhile are expected to more than double to US$50 million. EBITDA figures are meanwhile guided to US$6.0 million and US$25 million, respectively, for 2024 and 2025.
These figures are based on the company boasting 1,500 operating towers in 2024, which is to climb to 2,500 by the end of 2025.
“Our internal forecasting has been reviewed and vetted by the DFIs and other strategic institutions and demonstrates a validation of our business model,” commented CEO Francis Letourneau.
These guidance figures however are said to be subject to the company closing on loans from developmental finance institutions – which it has yet to do. The company is currently waiting on the lenders to complete a review of a key supplier in the Democratic Republic of the Congo before approving the loans, while a review of operating licenses in the Congo and DRC also needs to be completed.
The DFI loans refer to a US$18 million loan from the European Investment Bank, initially announced January 6, 2022, as well as a further EUR 8.0 million loan announced days later on January 14, 2022. While “approval” was granted for both loans last year, these outstanding items have prevented the company from actually receiving the funds under the debt facilities.
NuRan is now forecasting that the loans will be completed in September.
READ: NuRan Wireless Slows Site Rollout Due To Lack Of Cash
In the interim, the company appears to be in discussions for non-dilutive financing at the subsidiary level as a means of keeping operations afloat. The company has indicated that the funding would be complementary, and would enable further growth in Madagascar and the Ivory Coast.
The delay in funding however has resulted in salary reductions for staff and deferrals by the management team, with accrued debt related to salaries said to exceed C$300,000, which the company is looking to convert to shares. Negotiations are also ongoing to extend maturity dates on current debt held by the company.
NuRan Wireless last traded at $0.22 on the CSE.
Information for this briefing was found via Sedar, and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
