TSXV:EVE.H - Post by User
Post by
MJVigilanteon Jul 20, 2020 10:58am
141 Views
Post# 31290415
cut through the BS
cut through the BSEve is a young struggling company. They are tight on cash, They likley cant survive past October without change in condition. But that is only an educated guess based on Q1 results.
Q2 will likely have increased sales and some government releif. That may stretch the cash flow.
But lets be clear - they are not going insolvent, at least not overnight like some would have you beleive. There would be first an attempt or two at financing. It is very costly - look at ZENA. but it does extend life and that can have good payoffs - it just that you share them now.
-as they haven't yet they must have at least 2-3 months of cash left, once you get to that point you must look to the market.
if those financings are not good then you would see a board shake up and restructuring. RBC would take over and appoint a new board / CEO / CFO ... - changes would occur.
However - just a small revenue - say $5-10 million / quarter wouold generate positive cash flows, while most companies of this size are spending upwards of $100 million / quarter.
If the EU opens up and EVE's product makes the cut, and the contracts are filled before they run out of cash you could have a jackpot. (north of $1)
They also just recieved their licence amendment to 2.0 products.
it is a risky venture - dillution could make it still go down, but there is also a tremendous upside.
to much noise on this site again. My ignore feature is going to be back in force. I had a few months where conversations (that registered) were not so childish.