Ann: VEEM Reports Strong Profit Growth for 1HFY24, page-28

Unless the Miocevich have a few spare million to throw back into the company they can't do a capital raise without loosing majority control. Some how I think they will be very reluctant to do that.

Veem are already making the highest quality propellers at competitive prices in comparison to manufacturers in cheaper third world countries. This is the whole point of automation, which is what Veem has brought to the party, once you automate, then you don't need cheap labour. There is nothing in the process left that cheap labour can do. Veems foundry, and access to cheap gas in West Australia should also play a role in reducing costs. I would expect that they will be able to make the Sharrow propellers much more cheaply than what Sharrow are.

The other thing to note is that Sharrow are selling into the leisure market where the advantages are of limited value. As you get to the larger inboard boats, the longer range would become very interesting. Larger commercial boats and ferries the fuel savings are highly significant. Veem will be licensed to produce propellers up to 5m in diameter, which is quite large. The fuel costs of a large merchant cargo ship runs to millions of dollars per year and will increase drastically as they are required to use more expensive fuels to reduce their greenhouse emissions. If sharrow propellers can scale up and work with this type of vessel, then a very high price could be charged. (But veem would need to win the licence for propellers greater than 5m in diameter to be part of that - although with electric propulsion, multiple smaller propellers could be used.).

And this is on top of all the other great stuff Veem are doing.