Agreed it is cheap - if you value the company on the amount of capital raised compared with it's current market capitalisation. On most reasonable measures though I would consider it over-priced. A hostile takeover purchaser would be buying a handful of contracts, a loss making company and some technology IP with increasing competition.
I'd also suggest that risk adverse utilities would be hesitant to award substantial contracts to a company with $1.7m cash and running at a $3.5m loss - they might not be around in 6 months to do the installation unless they can find the $3m additional cash they are after. A task I'd consider heroic if achieved in current market conditions. I think the best option to pull this off is to slash costs and get cash positive fast then they should be able to grow organically with the growing market. After a few quarters of steady revenue growth and profits, investors may have the stomach to invest further for high growth.
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