This debt financing looks pretty smart given the circumstances. I would look for it to trade 30% lower before a speculative play. They have really put their backs up against a 9 month wall. There may still be dilutive effects if notes are paid in shares as the terms permit. So again, a smart deal that avoids immediate dilutive effects so long as they immediately begin generating sufficient cash to meet these obligations.
Certainly nothing to complain about as a shareholder since the other option was bankruptcy.
A real shame that they did not announce financing. Any deal announced this late will be on real S terms for exisiting shareholders, but still better than the alternative; bankruptcy.
Most folks I've talked to think that Axion is within days of a financing deal, and therefore you should wait for that announcement and then scope up some shares.
Being a public traded company, I am sure they will announce as soon as something is in place. Petersen has demonstrated here and elsewhere his inability to comprehend financing deals and their effect on shareholder value. I am sure he has already crafted his post financing article on how victorious Axion is in avoiding bankruptcy, he's just itchin' to hit the post button on that one.
You have to wonder if he will continue to put himself out there as a battery expert if this thing goes bankrupt.
Seems like a reasonable strategy at this point. It is concerning that they have not secured a financing deal by now.
Interesting article on Reuters today titled "Analysis: Rethinking the lithium-ion battery ", It is interesting when someone other than John Petersen talks about advanced lead acid batteries. The article mentions East Penn Manufacturing and Energy Power Systems as leaders in advanced lead acid technology, no mention of Axion anywhere, other than Petersen blog posts.
Without financing soon, your best bet for a gain here is a buyout from East Penn or Energy Power Systems.
Talk about adding insult to injury. Several folks must of made that move to drive this up. No other reason for the spike while they scramble for last minute financing. The best you could hope for here is 20 cents within 30 days once financing is announced. Some people just can't sit on cash for a minute though, afraid of "missing out", classic sucker move.
Jeez, if you have to buy into this Petersen OTC pipe dream, wait for the dilution people, can't be more than a few weeks away at this point.
As of 12/31 they had enough cash to last thru 3/31, after that they rely on cash equivalents which can stretch them for another month or so. It is a bad situation to be in, seeking financing and liquidating cash equivalents in order to continue operations. This is similar to the jam PLUG was in when they got last minute financing. Last minute financing deals are brutal to shareholders. You could lose 75% of value, if they even survive this round. Facts Petersen probably wont be addressing in any alpha posts.
This ain't no bashing either, just a reality of developmental stage investing.
We desperately need a financing announcement or miracle grant in the coming weeks or it is straight to sub penny.
Well, since you asked, nothing negative or really positive about todays PR, just kind of an operational update from the factory floor. Does not have any material impact on the financial strength or earnings picture. Just like the prior PR, no material impact, price goes up a cent or two and then drifts to a new low.
The positive is that Axion is being aggressive in putting out PR to avoid a PLUG like collapse in share price as we negotiate financing next week.
If you had done this at the time of your post, it would have paid off big time with the Ballard/Volkswagen announcement this week.
Always be wary of "Letter of intent", you usually see this phrase on pink sheet press releases as a way of hyping something that might happen. A letter of intent is non-binding.
The way I read this press release is that they are testing in one truck and Axion probably delivered the first batteries for free in exchange for a non-binding letter of intent so they could create buzz going into financing.
That is hilarious! Nice work getting the pumper in chief to reappear under his original yahoo id. Shouldn't your February Alpha post be out by now Johnny?