Re: Bad news from Germany
in response to
by
posted on
Oct 22, 2016 06:42PM
(Edit this message through the "fast facts" section)
The source for this information is from their own union. The first article sites "financial bottlenecks" or from another source "material supply problems" and the second article states they are having "financial difficulties" and this is from their union. They say there is hope for a restart of production at the end of the year. So it sounds like the best case scenario is a delay in revenue for about two to three months. Revenue for Q4 2016 will be modest and Q1 2017 which was suppose to be their breakout quarter will be almost zero. If they were to come out with a relatively positive explanation that alleviates our concerns and is reasonable then I could deal with that delay but don't expect the SP to hold through all of that. Should they come out soon and announce that they have secured financing the impact might be negligable. If the delays are as bad as it sounds will the OEM's wait? I thought it was a bit unusual that in their last announcement at the end they seemed to emphasize the fact that there was no "firm irrevocable commitment" from the previous agreements. http://electrovaya.com/electrovaya-signs-supply-agreement-and-a-strategic-supplier-agreement-with-a-global-oem-for-residential-energy-storage-applications/ For them to restart production they need a significant amount of money soon. Until they come out and address what is happening we are left with just this information from their union.