VR1 3.57% 13.5¢ vection technologies ltd

The Real Deal

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    Good evening gang.

    Firstly let me apologise for the long post.

    This is a summary of a broker/investor meeting my colleague and I took part in with 2 of the directors of VR1.

    We have permission from them to share this information here, as all of this has already been announced to the ASX/Market, however we were able to go deeper and unpack so much more information than the company could ever provide in any announcement or update.

    The first Hospital trial has gone really well, with a significant amount of revenue to commence from this in the second half of this year.

    We are now in advanced discussion with additional hospital facilities for the introduction of our technology.We have partnered with CGM, a Frankfurt listed E health leader, who provide management software for pharmacies and dental practices integrating AR within their existing software.

    We will introduce our software within their software and they are going to resell our technology to all of their existing clients. They have 1,000’s of pharmacies world wide across Europe and US as well.

    Working in the 5G sector working with Nvidia for cloud XR technology see:https://www.nvidia.com/en-us/design-visualization/solutions/cloud-xr

    For a great explanation of the application read this blog below, explaining how Silicon Valley Start up Lucid Motors is using this technology.

    Lucid Motors recently announced the new Lucid Air, a powerful and efficient electric vehicle that users can experience through a custom implementation of the ZeroLight platform.

    Lucid Motors is developing a virtual design showroom using the CloudXR platform. By streaming the experience from AWS, shoppers can enter the virtual environment and see the advanced features of Lucid Air.

    “NVIDIA CloudXR allows people all over the world to experience an incredibly immersive, personalized design with the new Lucid Air,“ said Thomas Orenz, director of digital interactive marketing at Lucid Motors. “By using the AWS cloud, we can save on infrastructure costs by removing the need for onsite servers, while also dynamically scaling the VR configuration experiences for our customers.”


    We are working with NVIDIA and Solid Works which is a CAD software and we are integrating the two with Mindesk technology and this will be one of the first initiatives in the 5G sphere.

    This is important because the telcos have built all this 5G infrastructure, which has very little use for enterprises, so they will be able to sell 5G technology infrastructure to companies in the US and we will be one of the first companies to do this through Mindesk software.

    We are doing a lot of work currently in the automotive industry where we will likely sign some of the biggest names in auto in the US and in Europe.

    We are working in both the area of Education and Training, as per recent ASX announcements, as well as hopefully soon we will be able to announce our first client win in the Defence industry.

    We are also working on introducing CAD technology together with AI for maintenance purposes.Spoke about FrameS. It’s a VR software that enables companies to visualise in a virtual environment through the cloud, prototypes/3D models, sales presentations, training, etc….its a very useful tool for companies to use.

    Spoke about how Mindesk works. Its an engine, same as Unity or Epic Games/Unreal Engine. Its an engine for CAD software for integration of manufacturers data to VR….and we are linked to the Unreal Engine/Epic games, where we have a very significant partnership.

    For those that don’t know, look up Epic Games, the creator of Fortnight the most successful game ever made.

    They showed us a video of a designer editing directly in VR which was working directly in the CAD software. This is hugely significant because CAD software is generally NOT a collaborative environment where multiple designers can work together on the same project.

    Yet with our product and the work we are doing with NVIDIA we are making this possible, and this is ground breaking stuff. Hence why all these big tech names want to partner with us.

    They spoke about all the auto CAD software providers on the market today, and how they are all looking to integrate VR/AR as it allows their clients to become more efficient. And Mindesk is the technology that enables that integration…so it’s the engine that enables integration from CAD, to VR to AR.

    GianMarco then ran through some of the work we are doing in various sectors and how AR/VR is revolutionising all industries.Health/hospitals, we spoke about AR using the glasses not the full headset. We are working on multiple medical areas, but gave example of endoscopy, where the video feed from the endoscopy comes into the field of vision of the glasses for the surgeon, who can see it all in his direct field of view….without having to look to the left or the right its all imaged in front of him and no need to look sideways to any other screen.

    Then you have nurses who can access data from their management systems without having to touch anything or contact any other professional, and they can then remotely collaborate at once so for example the ambulance workers are in direct collaboration with the doctors whilst patient is still in the ambo being transported to hospital.

    For the last part of the meeting we spoke about revenue for the business.GianMarco clarified that the recent DELL/JMC announcement for $330,000 revenue is ARR.

    Yes that’s correct gang this clarifies it, that the amount we thought was a one of sale was in-fact part of the Annual Recurring Revenue model.At the start of the year we announced the Volvo deal you may recall, which is also $100K of ARR.

    He said they are very confident they will achieve that 50% ARR goal by June 2022.

    Explained that the growth we have seen previously will continue, and hence I assume that if we did $3m revenue last year, and we have 100% growth this year, and hit $6m total revenue, then they expect 50% of that will be ongoing revenue…..how awesome is this!!!!

    However to be honest from unpacking all of the announcements in the last 12 months, and the contact we have had with management over the last month, I am guesstimating that the revenue number by the end of this financial year will absolutely blow that $6m number away.

    We have in-fact completed some sensitivity modelling/analysis and due to the size of the partnerships that we have announced in the last year, have a base case ARR number that dwarfs these estimates.

    Remember, we are not building this a customer at a time, we are gaining instant access to our partners client bases….with the most recent example being our acceptance by Microsofts AutoDesk into their global network program giving us access to their 11m customers.


    Finally, just a few words worth mentioning about the recent selling.We all know the company recently raised $6m of cash via a placement. From my understanding a handful of brokers participated in the raise. I am aware a very large fund manager came onboard as a cornerstone, and a bunch of HNW’s came in via the broker placement.

    Most of that stock was placed by Cannacord. That stock was allotted last Friday, and it is my personal belief that most of the HNW stock has been sold back into the market. Looking at the broker data of the last 10 days, a chunk of it was sold by UBS which I believe is the Cannacord clients, and Morrison did the balance, which is the broker that did all the buying from 2.5-6c.

    Hence it seems that the brokers did what brokers do….made money for their clients. The good news is that the market was able to absorb all that selling of the last week comfortably…. (and I did my bit by doing a fair amount of buying too).

    I am expecting a very serious amount of news flow between now and the next number of weeks leading to Xmas, so expect to see us back at the recent high of 24c…and well past that in coming weeks.It is my personal belief that we have a real tech giant in the making here and we will see this surpass the $1Billion Market Cap value in a very short space of time.

    This is NOT financial advice and only my opinions based on my own personal research.

    Have a great week team.

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