RE:RE:Plan to move towards vertical integrationSo reading between this lines........this is how I view this news release:
NEXE has received substantial commercial interest for its single-serve beverage pods and anticipates that this interest will continue to grow, making manufacturing capacity and reliability of paramount importance. In addition to its current and planned high-speed assembly lines, the Company has begun upgrading its facility for the production of bio-based materials and bio-based parts.
Am I reading this right? It sounds like they have received so many potential orders, their current facilities (which they just upgraded) would not be able to handle all the volume, so they are upgrading their facilities again?
So just my opinion but........would it be safe to assume that they have the orders in hand but they are contingent on NEXE's ability to make X number of pods annually. And when those upgrades are complete, they can announce those orders? I mean would NEXE go to the expense of upgrading facilities again without some sort of commitment? Would any company want to place an order and then worry about production issues? Sort of comes back to their statement a few weeks ago, of "if we could make a billion, we'd sell a billion". If they do have orders that are contingent on being able to fulfill the volume, when they finish upgrading, it could be an announcement of new orders almost every day. Maxell House one day, Nabob the next day, Tim Hortons the next day, Starbucks the next day, etc etc. Just my opinion.