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Axion Power International Inc. Message Board

  • strangerthingshavehappenedzbop2 strangerthingshavehappenedzbop2 Nov 29, 2012 12:47 PM Flag

    What Did Fisker Tell Us All Today ?

    Fisker Awaits A123 Battery Plant Sale to Resume Karma Assembly
    By Alan Ohnsman - Nov 29, 2012 12:00 AM ET - Bloomberg News

    “ Because we have no batteries, there’s no production right now. Inventory is starting to get a little low,” Posawatz said in an interview, without elaborating. “We’d like to restart production as quickly as possible. "

    Hmmm. So Fisker automotive plants sit idle, likely costing the company
    thousands if not hundreds of thousands daily/weekly.

    I think Fisker sent a message to all that it is foolish to have your product reliant
    on a company with low or risky finances, low production, and no back up.

    And Axion Power's production capability is what compared to A123 ?

    Even poster John Petersen, if I recall correctly, has reported or estimated Axion Power
    would need 50 million to 70 million dollars to get production up, and of course
    for any large contract Axion may have to have another manufacturer make the batteries.

    I think we all agree, that To raise 50 million dollars with a .28 share price
    they may have to sell about 200 million shares. Interesting.
    Although it would be wonderful to have to raise productivity !
    Where would that money come from and at what cost ?

    I think most agree, the next step for Axion Power is a financing, enough to
    get by say the next two years (2013 and 2014), with a burn rate of about 8 million dollars a year
    this could easily be a goal of a 16 million dollar raise. I think many venture capitalist
    would Not enter without knowing there was two years of funding;
    (my general personal rule is do not enter unless there is 2 years of funding
    especially when you know they will have to go back to the well in a year).

    8 million would say get them by a year with no increase in productivity or perhaps
    better said, no additional capital improvement. Basically let them do more testing
    for a year, and work with others doing testing.

    To raise 8 million dollars sell another 40 - 50 million shares ?
    To raise 16 million dollars sell another 80 - 90 million shares ?

    If I recall in February 2012 they sought 10 million raise, but could not
    get it all, and received around 8.6 million ?

    They did so by selling shares at .35 (I think it was trading about .5 or .6 at the time)

    Now it is at .28 having gone as low as .20.

    Imagine putting 2 million dollars into Axion at .35 in February 2012, and
    seeing the price go to .28,
    AND knowing another financing is NOW or Soon
    AND knowing the "new investors" will possibly get a price as low as
    or even possibly lower than .175.
    Wow that would tick me off.

    Do you think having bought at .35 those same investors are anxious to get back in ?

    If they tried to sell 50 million shares today, what price would someone pay for that ?

    Certainly interesting, I think Fisker really spoke to us all today.

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