mCloud Technologies Corp (MCLD)

[DVP25]

So far, here is what we know from the publicly released info ...

$15M in funding for 30 dealerships (= $500K per dealership)
Loan terms are 5 yrs at 10%
$2.5M ARR generated from 30 dealerships (= 83K ARR per dealership)
Target is 500 dealerships by year-end 2023

So if you look at this on a per dealership basis over the 5-yr term of the loan, they would generate right around $500K in revenue. The 5-yr cash outlay would be $750K ($500K loan + $250K interest).

By the end of 2023 they would have an additional $250M in debt.

Obviously, we must be missing a whole lot ...

p.s You probably noticed in the note that the initial loan was issued to a "subsidiary" of the company. So there is an additional wrinkle to all this. Is that just an accounting gimmick or is there more to the story of the subsidiary.