No/Little dilution needed to move forwardWhich is what I've been saying all along.
Here's a little recap of how thing will play out according to what we know today:
1) Using the 10M in bank financing the company recently arranged, they can get to the 50M revenue mark, after which the bank can be expected to review and increase the amount of debt financing they've already provided to allow the company to move to the next level, according to information provided by SVP and CFO Halka on the company's last quarterly conference call.
2) The process to convert the German plant to the NMP-free manufacturing is underway, is expected to cost 5M EUR to complete, and is also expected to be supported financially by the German government.
Looking at these two items alone, the short theory has just taken a huge hit, since it was based on the potential for massive dilution foe current shareholders and/or the company's inability to deliver on the EOM agreements it announced in recent months due to lack of access to capital, with both arguments now having been disproved.
As to the impact an NMP/NMP-free process some are are saying will have on sales in the short term, if potential clients find Electrovaya products to have better quality and performance than other competing offerings available to them right now, it won't be much of an issue since competetors can't offer NMP-free products either at this point. So if customers need the products now, they won't be putting off their own plans and purchases from Electrovaya just because they have to wait a little longer for Electrovaya to get their plant converted.