Exro Technologies Inc T.EXRO

What's Next..... A Thought to Promote Some Discussion

[SIMPLICITI1]

EXRO will need more funding. Not up for debate. 

Funding could come from a strategic partner (a Tier 1 from any one of their primary markets) .

Amount = $50 million
Type = Equity in 3 tranches based on Agreed Upon Milestones that Benefit Both Parties 
Tranche 1 = $15 Million @ $3.25 (on signing)
Tranche 2 = 15 Million at  @$4.25 (milestone 2)
Tranche 3 = 20 Million @ 5.50 (Milestone 3, Completion)
 
Total Shares Added = 8,342,246 (5.3% to existing)

Enterprise Value at Milestone 3 Completion = $907 Million

Share price at end of Milestone 3 = 5.50 + 40% ( $2.20) = 7.70 
Market Cap at Milestone 3 = 1.271 Billion
Tier One Ownership =11,781,161 Shares ( 7.1 %)
Tier One AVG Cost per Share 4.24
Tier One ROI Between $15 and $64 Million

That Tier 1 Return pays for a lot of Product!!!!

[beaner53]

Conceptually, this is totally in line with my thinking and has been for a few months. The question now is...who will be the Tier 1 that comes to the table? Possibly more than one? Linamar would seem to a logical Strategic Partner with deep enough pockets. Who else? Bosch? Not sure about that.  Take a look at the Automotive news top Tier 1 worldwide and throw a dart.

[Kappyo]

Possibly GE small motors division which was previously run by Sue!!

[dwitzany]

I'm thinking/hoping a premium auto (car) company.  That would give the anouncement the best "traction"..., sorry, had to say that!

[zinger99]

There is no question that the announcement around a new strategic partner will be a boost for EXRO and the market. It is noteworthy that there are several options for the company which suggests that the new partnership ought to be exciting. I like the fact that this has taken a bit more time to line up, suggesting solid DD and negotiations.

[SIMPLICITI1]

I remain hopeful that they take a strategic approach to raising capital to minimize dilution and maximize ROI for current and strategic shareholders.  At the end of the day...... the real power brokers in any one of their markets will do an assessment of what they could do with the tech over a reasonable time horizon versus EXRO and likely take them out.  Take out could be defined

[dwitzany]

Hi, First, thanks to Stockhouse and you Bullboarders, that's how I found this company!!! Second, @Simpliciti, I'm not sure the current market will provide the valuation increases you described at the beginning of this thread, but who really knows? Having read a lot more on this company and the tech, why wouldn't SEA (@ 100x the Market Cap) just take them out once the technology proves

[iknowsmthing]

Could be more then one Tier 1!  We have now entered advanced-stage discussions with multiple global Tier-1 motor manufacturers and suppliers to OEMs, any of which could significantly amplify our market presence. Based on the level of negotiations, and in- person executive meetings scheduled in the weeks ahead, we are highly encouraged we will sign our next strategic

[Kappyo]

From the wording, there are more than two companies Exro is in discussions with.   currently 267k shares traded in U.S., up 13.5%

[Kappyo]

Sorry, 15.3%

[Wriggles]

Concur with your statement for the need additional funding.  And it very well could come through a strategic partner or other strategic funding arrangement.  That appears to be the balloon that EXRO was floating through 4Front's December report.    Using share price as a criterion for committing funds seem tenuous as SP for emerging growth companies is often volatile

[thefourth]

There are many ways to "skin a cat" as they say and acquiring equity financing from a tier one partner would certainly be preferable to another unit financing with a warrant gift attached. In the scenario you illustrate can you please explain the jump from the $907 million market cap to the $1.271 billion market cap?  You lost me with the $5.50 share price +40%. Where does the $2

[SIMPLICITI1]

In this scenario, (one of many) the key is achieving the milestones all of which get the company closer to delivering product to/for the tier 1 investor. Milestones one and two fuel the notion that the products are indeed worthy of investment and carry the SP back to a level commensurate with the opportunity. This will be supplemented by other announcements. Milestone 3 completion leads to a

[thefourth]

I say, we are off to the races.  Future fiancing is going to come easy., IMHO