Audio Pixels - Research Report - 24th Of June 2020, page-41

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BobLoblaw

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03/07/20

18:24

Post #: 45635005
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Originally posted by uncle joe: ↑

Possibly Bob, but I wonder what sort of production volumes they will start with. Either way it's likely that a significant amount of cash will be required. We know it will take 6 months to produce, test and package chips ready for distribution to customers. So that's 6 months production costs before even the first chips are ready. You might then stage delivery over a period of months or continue producing x-number of chips per month for a number of customers Then maybe another 1 or 2 months before invoices are paid. So at least 7 to 8 months before you start seeing any real cash flow and you will have had to finance another 6 months of lead time fabrication. So that's well over a year's worth of fabrication to cover off on. Meanwhile you are likely to have had to ramp up production for additional customers (otherwise there would be no growth).

I'm expecting 2 x capital raises. One at the end of this year and one towards the end of next year to ramp up production. I also think that the amount of the raise will depend on the share price at the time as Fred will not want to dilute his holding too much. So the initial production volume might also well depend on the capital raised.

I've tried to find out what sort of spare capacity Tower Semiconductors has, but I can't see any firm numbers. However, from a CEO investor briefing some years ago he did say that one of his missions was to fill their spare capacity - so they will likely have spare capacity at least. So cash might be the limiting factor.

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What if AKP got paid up front? What if AKP got a loan for some of it?

Regardless, I don't see it...

AKP Price at posting: $19.50 Sentiment: None Disclosure: Not Held
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Audio Pixels - Research Report - 24th Of June 2020, page-41

Week 27 Wrap: ASX hits all time high; CBA shares' two realities; US inflation hits 3% ahead of China plenum

ASX hits all time high out the gate on Friday trades following bullish US inflation data

Almonty locks in govt agreement for tungsten oxide plant in South Korea

SKS Technologies wins US$90M award to supply power to international hyperscale data centre in Melbourne

Infini soars 50% as company reveals it could’ve just made uranium history – redefining what it means to be “high grade”

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Nimy to raise $1.21M to explore 'newsy' WA targets

BHP dips as WA nickel suspended after A$6B hit; losses eased by US CPI and forewarning

Nanocap Middle Island Resources kicks off Barkly copper-gold drill run – a potential IOCG-style NT project

Immutep reports strong response rate from immunotherapies treating carcinomas

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Audio Pixels - Research Report - 24th Of June 2020, page-41

Top Stories

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SKS Technologies wins US$90M award to supply power to international hyperscale data centre in Melbourne

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