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Electrovaya Inc T.ELVA

Alternate Symbol(s):  ELVA

Electrovaya Inc. is a Canada-based lithium-ion battery technology and manufacturing company. The Company designs, develops and manufactures lithium-ion batteries and battery systems for energy storage, clean electric transportation, heavy duty electric vehicles and other specialized applications based on its Infinity Battery Technology Platform. The Company is focused on contributing to the prevention of climate change by supplying safe and long-lasting lithium-ion batteries. The Company is also developing next generation solid state battery technology at its Labs division. The Company has two operating sites in Canada and has a 52-acre site with approximately 135,000 square foot manufacturing facility in New York state. Its battery products are used across various applications, including material handling, e-mobility and energy storage.


TSX:ELVA - Post by User

Bullboard Posts
Comment by Dacomon Feb 18, 2015 6:25pm
154 Views
Post# 23441452

RE:IT'S ALL BEEN A RUSE

RE:IT'S ALL BEEN A RUSEIn the past, I've dug into the Finacial Report in some detail to try and explain what is going on (and sometimes I've said that it is impossible to accurately see what is going on). However, I don't think it is worth doing that this time. The results speak for themselves. Very low sales. Big losses. Contunual use of cash. Missed forecasts. Etc.etc.  it is hard to see how they could finance the factory purchase with this sort of performance. They say that they can borrow the money because of the value of the assets being acquired. But, I'll repeat myself and say that banks want to see a respectable historical performance and a credible forward looking plan where there is a reasonable prospect of the interest charges being covered by operational cash generation. (By and large, banks aren't interested in repossessing and selling distressed assets). Sadly, this quarter confirms the lack of such a credible  financial plan. EFL has gone to the market a lot this year for big borrowing and significant equity raises. Sooner or later that will prove difficult, if not impossible, unless something dramatically changes with the performance of the company. However, with Sales and Marketing expenses of only $90K a quarter, it is hardly surprising that the $15M revenue target was missed. Based on everything I see, I would, again, caution against an investment in EFL. Any sensible investor should be looking for solid evidence of competitivemess and a sound financial plan, rather than multiple pages in the MD&A describing the "exciting market opportunities". I think the expression "Where's the beef?" Just about sums it up.
Bullboard Posts