No Interest?, page-11

Ltd has provided an update to the market with respect to their ‘White Label Program’ (WLP), as well as the first purchase order from Stanley Black and Decker (SBD). Highlights of the announcement include the following.

SBD has placed its initial purchase order for Scout’s equipment.
The initial purchase order progresses the relationship with SBD and sets in motion one of the numerous near- and long-term opportunities provided by the partnership.
Scout is currently in discussions with multiple potential partners that could expand the growth of the WLP in 2019 and beyond.
Analyst comments: this update from Scout is promising as it highlights that the SBD partnership remains on schedule and first sales on track for 1Q19.

More details of the purchase order – in particular, the size of the order – would have been ideal; however, it is not surprising that such information was withheld, since a large organisation like SBD (a Fortune 500 company with a market capitalisation of around US$18 billion) is often sensitive about what is released to the market when immaterial to its business overall. Indeed, it is unlikely that any purchase order, no matter its size, would ever be considered ‘newsworthy’ by SBD.

That said we maintain our belief, given SBD’s size and global reach, that the initial order and subsequent sales are likely to eclipse all Scout’s previous transactions. Once they transpire, a significant re-rating of Scout’s share price is likely.

The information in this email should not be the only trigger for your investment decision. We strongly recommend you seek professional financial advice whenever making financial investment decisions.

Valuation: we maintain our valuation of Scout at $0.94 / share (SP $0.21/share) and will review this as more information on the Scout/SBD partnership is released.