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Thoughts from Neil on Asator

---------- Forwarded message ----------
From: *Neil Callahan* <neil@rstp.com>
Date: Thursday, April 21, 2016
Subject: Asator Call tomorrow at 1:30pm- background materials
To: Joan Mayer <jmayer@rosemontseneca.com>
Cc: Eric Schwerin <eschwerin@rosemontseneca.com>


Hi guys,

Looks ;very interesting.

It's pre-revenue and an "expense" investment for companies.

Pros are:
+ solves the problem of reducing system outage due to sun spots
+ protects workers from power surges
+ if all grids need adopt this solution, huge market opportunity
+ seems like the science is really well established
+ important to proprietary grids - military, energy, etc will care as their
mission is greater than public service requirements

Cons are:
- solution in search of a problem - do Public Utilities really care about
avoiding solar flare downtime or is it okay to claim mother nature did it's
thinking
- with all the challenges to Public Utilities losing consumers to
technology enable competitors with a better customer experience and more
modern user focused tech - not sure Utilities will be able to make this a
priority - Public Utilities are a risk of being the dumb pipe like what
happened to AOL. So investing in front-end tech has the attention of
Public Utilities.

Recommendation:
+ sign them as a BD client
+ we can take them to several groups (via you) including a new group in DC
that is a bunch of Goldman energy guys: http://tfcutilities.com/
+ Formation8 and SaudiAramco investing in a RI company called Utilidata -
we know them well via Heinz network
+ John Roger is on the board of Exelon and they are talking with Utilidata
and would be interested in being a strategic investor
+ GE would also be interested
+ Take them to the utility worker unions - ask the unions to push for the
technology to be adopted to protect their workers and offer it to the
unions to invest in

Net-net:
- pre-revenue - market is tough now, 8 months ago was great, today it's not
+ get workers and their reps to ask for the tech to project them
- Public Utilities care about the front end in fear of getting completely
disinter mediated ala AOL, so they only care about gird improvements if
regulatory require them to care right now - all focus in on the front end.
+ sign them as a client to raise them money, their prospects are slim of
getting a rep to help them raise money
+ partner with Cal Tech or MIT and purplish something about Solar Flares
and how it ties to cancer or autism or something and then blow it out on
social media to make it real for people to understand and care about.
- solar flares put everyone out of business for a period, so no one would
really care in the Public Space, if everyone else is down, I am okay too
+ talk to high end places like Amazon, Dell, IBM that want "the 5 9s"
99.999 of up time for their data centers - although when the grid goes
down, that have back up plans already in place.

I hope this helps.

I am in DC next Wed.Thurs - will hope to see you.

Best,

Neil


On Wed, Apr 20, 2016 at 10:18 AM, Joan Mayer <jmayer@rosemontseneca.com
<javascript:_e(%7B%7D,'cvml','jmayer@rosemontseneca.com');>> wrote:

> Neil,
> Hope you are doing well. Hunter and Eric asked that I forward you the
> attached information about Asator to see if RSTP had any particular
> interest. This company is looking for $2m from a strategic investor with
> expertise in companies that face regulatory challenges. Let us know if you
> have any comments or questions. Thanks!
>
> Best,
> Joan
>
>
>
>


--

Neil Callahan
rstp
neil@rstp.com <javascript:_e(%7B%7D,'cvml','neil@rstp.com');>
917-945-9516


--
*Joan K. Mayer*
Rosemont Seneca Advisors, LLC
1010 Wisconsin Avenue NW, Suite 705
Washington, DC 20007
o: 202-333-1880
m:202-841-8543
jmayer@rosemontseneca.co