The cash to be generated from early orders is not going to be enough to transition the company to a "cash flow positive" state. CR is required to cover operations until they do. Hopefully this will be the last for a while however keep in mind that down the track some of the company's growth plans will require more investment and nothing in the semiconductor space is cheap so do not expect this to be the last capital raise either.
What the management will be hoping for is that each new CR becomes value accretive (not dilutive) and that investors see a logical story that the investment is bringing greater returns in the future. This will either push up the SP or attract potential takeover interest (or both). If the SP continues to rise then any future raise will, by definition, be less dilutive.
I'm a LTH and for the first time in many years I can actually see a viable investment case for BLG. I have no idea what the SP will do but in my opinion I think there is a reasonable chance that the SP will continue upwards once the raise is put to bed.
At the end of the day if BLG continues to hit milestones then there will be significant upside. There is no guarantee that they will hit those milestones - especially the revenue targets.
As always just my opinion so probably wrong.
Cheers, SC
BLG Price at posting:
7.5¢ Sentiment: Buy Disclosure: Held
