Yep, interesting read but for me bad news. I had really hoped that Sanevo were going to place the follow on order and we were going to simply "make the things"
We are forever moving further away from the model I loved so much where we put out Gennex into boilers/other peoples tech and they had to do all the supply chain logistics. Now we are having to ramp up the commercial aspect of the business and make direct sales of units ourselves.
It means we get bigger and fatter whilst trying to get established which is a far harder thing to do.Far harder and risker model . If e.ON/EWE came to the part for a few thousand integrated units then great...but that is years away as it takes forever for large companies to respond.
So I guess that means goodbye to the Sanevo follow on orders, the long term agreement with E.on looks dead.
When a company at the forefront of mCHP distribution in Germnay, our prime market goes belly up...it says the market isnt really interested or ready. They sold a number of different units offering different tech which you would think woudl be a rather low risk approach in what is meant to be the biggest mCHP market in the world.
Though time will tell as more info comes out that perhaps the Sanevo folding had more to do with trying to get out of the cash burn that Whispergen was going to be to them. Either way it doesnt do confidence in our market any good at all!
CFU Price at posting:
5.4¢ Sentiment: None Disclosure: Held
