Ann: Funding approved for US Barona 6.6 MWh LDES project, page-23

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Andrix

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24/06/24

16:42

Post #: 74463652
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Originally posted by sjl: ↑

That's basically my point. This is a small project - another small project in a string of small, unprofitable projects that Redflow has had over the years. 6.6 MWh is "only" 660 battery modules (on the old design); it's not enough to push the company to the level of production that would potentially allow for profitability.

I get the impression that potential investors aren't impressed with a company that continues to bleed cash, and which seemingly is making no progress towards being a profitable (or at least break even) company. The failure to communicate adequately around the warranty issues is an added concern; but primarily, it seems like the company is more than happy to just sit where it is.

That's not good enough. There needs to be a very clear picture painted on what the pathway to profitability is, where the company stands on that path, and what obstacles remain to traverse it. There's nowhere near enough detail there for the length of time the company has been in business.

It's been less than two months since I sold out of the company, and it's fallen over 10% from what I sold it for. That tells you everything you need to know about the market's sentiment towards Redflow. If they don't crack profitability, and soon, they'll fold: there's only so much that shareholders will tip in via capital raises, and I think they're pretty much at that limit now, based upon the last raise they did. Or maybe they'll be bought out for the technology - that's the best case scenario for shareholders if they don't find their way to profit (but I'd be willing to bet it would be at a lower price than the current market price of just under 9c per share.)

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I have to agree about communication, or lack thereof. Maybe the news is not pretty. Anyway, the June quarterly will shed a lot of light, but that is a month + away. Lots can happen in that time.

RFX Price at posting: 8.5¢ Sentiment: Hold Disclosure: Held
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