MNS threads on HC, page-1048

Some of my thoughts post-certification

MNS won’t be able to touch any profits from iM3NY because the money needs to go back into the factory. This is usually what happens for any start up. iM3NY will need the money for expansion and to pay down loans.

That means MNS will need to raise money to keep their lights on. They could do another capital raise (which no one wants) or get a loan from a bank (or government) to fund AAM and Nachu. My guess is they will go with a bank loan, which won’t be difficult because they can use their stake in iM3NY as collateral.

With that said, it seems Magnis will only start generating revenue when AAM and/or Nachu are up and running. If we use the timeline from the Tesla agreement, that will start in 2025 (assuming NACHU starts generating revenue around the same time).

If these assumptions are correct, this is a long road to profitability for MNS. It’s a huge risk betting on MNS, which is why the SP is so low in my opinion.

But I’m very bullish because MNS’s assetts (iM3NY, AAM, and Nachu) are extremely valuable in the energy transition. Not only are they valuable, they are critical. There’s also massive government incentives for companies like MNS to succeed in the market. The tailwinds are huge and iM3NY will provide valuable collateral along the way if MNS needs more funds.