RE:My first takes on EV Connect Solutions (EVCS)I would like to know who the initial 1 million dollar contract was with and if this new aquisition will add to that relationship.
Resilience19 wrote: Firstly, I'm happy DM is making a stronger move into the EV vertical, following last Autumn's $1M initial contract in the sector.
Although I'm not particularly fond of the arrangement ($10M/66M shares), I don't feel I have sufficient information to objectively assess the situation at this point. However, I do agree with others that it inititally feels a bit like the Medi-Call deal (buying something in development rather than something sturdy, ready to generate revenues). Through the provision of (cheap) shares I feel we're giving EVCS concrete business income (i.e. SMART $40M contract) for (significantly?) less in return...
This said, I'll give MG the benefit of the doubt, at this time, noting that I like the synergies between ongoing DM SK-based customers and EVCS/EVAR as I see a LOT of potential (as alluded to by MG in this week's Discord) for integrating DM's broader AI into EVCS - and other DM subsidiaries, such as Medi-Call.
I'm hopeful/confident MG will provide more insight into the deal in the upcoming (this week or next) Agoracom call.
I feel that, once the EV model will will be up and running, DM will benefit from potentially substantial recurring revenues, at low overhead costs. However, I expect it may take some time yet, not unlike with Medi-Call, before we see this begin (12 months or so).
In short, I have mixed feeling about the deal - happy that we've jumped into a very promising vertical but less confident that we did so at an enviable cost/benefit ratio.
At this point I'll wait it out, as an investor, but appreciate others irritation at clear perspectives, on this new development, given the way the sp has stood (mostly in a 0.14-0.20 range) since Dec '20.
My two cents.