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in simplistic terms for me the Board wanted to continue expansion and sales were up last year and early this meaning they were on track to break even. Sales have dipped since the inflation/recession problems which although EVE could see fixed expenditure trimmed potentially to reduce costs this will stop the expansion they have been targeting.
So new money is needed to chase expansion. No new money would mean trimming costs and settling for stagnation…
I know this is a simple outlook and things are more complex than that but it’s as I see it.
The cashflow seems to have been completely mismanaged to have burnt so much cash of late but that’s a different matter.
Would a new investor trust the current CEO to continue? It remains to be seen. The evidence for the CEO doing a good job isn’t great though.
... though the ongoing FSP very conveniently shields EVE directors from needing to account for the present situation as the ongoing FSP prevents anything being said!
Caution is now necessary here maybe?
Good point DG. Only RNSs due for certain scenarios… that we can assume haven’t happened yet.
Simba talks fell through in 5wks. No falling through
Talk updates as yet which is a positive. Also as you say we know a small number have progressed to due diligence stages.
So overall I’d say there are reasons for optimism as things stand that something is being sorted. New capital was needed to continue expansion as per the RNS.
For longer term holders though this alone is not enough. Any deal needs to be satisfactory SPwise
It would be nice to get an update at some point soon!!
Pingu, my understanding was that we would only hear if a deal was struck and then we’d vote on it, or hear if eve declined some sort of offer - and eve would outline the reasons for declining - we would not hear if a party just changed their mind and withdrew their interest / walked away.
They did say in the last RNS that their were interested parties and due diligence was taking place. So either the talks are ongoing now or the people have indeed walked away (but eve have not rejected them or we’d have heard).
When Simba were sniffing around three yrs ago it took five weeks from the news leak to the collapse of talks. I would imagine there’s more time pressure now than I was then yet it’s two months since the FSP was announced.
"what they really need is an injection of working capital sufficient enough to ride the storm , make adjustments, increase sales , and collaborate with other linked companies that are sleep and well being orientated."
How long will the storm last? What adjustments are left to make? How will sales be increased in the current climate? How do you collaborate with your competitors?
Why was none of this deemed necessary to the business model before now?
I know, I know, .....there will be no response.......
In terms of timescales and how long this is all taking... does it infer anything about how advanced the investment raising project is?
ie the longer it takes for an update to come the more likely it is to be a positive one? Or am I clutching at straws?
Surely if no one was interested then we would have heard by now
Anyone familiar with BBBY will understand that they (whilst on a much larger scale) have also had similar problems to EVE… EVE don’t necessarily need to be bought out (unless the offer price was genuinely appealing to shareholders) ..what they really need is an injection of working capital sufficient enough to ride the storm , make adjustments, increase sales , and collaborate with other linked companies that are sleep and well being orientated. There’s lots on offer here. There’s absolutely no reason on earth why talk of going into administration (muted by the naysayers on this board) should be in anyones thought pattern. The FSP process expressly stated that they are looking at all potentially viable strategies including the injection / raising of funds. Everyone here seems too focused on just a sale. We must remain open minded to all or any positive and productive outcomes.
There are too many jobs and associated livelihoods at stake here to let this fail. Stay positive and hopeful. I truly believe there is a viable solution which will ultimately benefit everyone in the not too distant future. Just my opinion. DYOR
#buy&hold