Trading op vs investing op27 Sep 2023 12:14
In the certification testing the Ultra High Power cell met all of the A-Sample target performance requirements, however, due to the identification of a minor manufacturing defect, the certification process of the cells has been halted. The root cause of the defect has been identified, and cells from the next production batch, in the third quarter 2023, will now be used to certify the product. - which if delivered unlocks the faraday grant
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Some highlights they ran out of funds
Highlights:
· Automotive sector Ultra High Power cells:
o Extensive on-going trials show the cells have consistently achieved a full charge within six-minutes.
o Cells manufactured on GigaFactory equipment at UKBIC delivering exceptionally well against the Company's target specification at ever increasing volumes.
o Five non-binding MoUs signed with key automotive partners: Cosworth, Viritec, MAHLE Powertrain, Sprint Power and BMW.
· Energy storage sector Ultra Safe cells:
o Cell development is nearing completion having reached its energy density specification of 140 Wh/kg.
o Planned to commence production at Thurso later this year for delivery to customers for initial evaluation and project and supply validation.
· Ultra Prime: initial sales expected to commence in FY24, with production centred on Thurso.
· Overall pipeline of opportunities in excess of £240m.
· Focusing on the Thurso production facilities and UKBIC will enable AMTE Power to leverage its competitive advantages and development pipeline to drive the next stage of its growth towards the MegaFactory
· AMTE Power plans to have its new, state of the art 0.5GWh MegaFactory in Dundee ready within three years. The facility will be capable of producing more than 8 million cells with a revenue stream in excess of £200m.
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Shares are to be issued at 1.7p raising £2.1 million, which AMTE said would tide it over until a new equity investor completes due diligence on a £2.5 million cash injection.
Technical due diligence is underway and the new investor expects to complete the work by the end of October 2023.
How much lower could it go vs how much higher?
There's always still the risk of 0 but that really doesn't seem to be the case now and either way it should be clarified in the coming days
The potiencial upside in the long run vs a short term trade from here is immense - they were sitting at 45-55 before they ran out of cash
From TG - dyor