EVION GROUP GENERAL DISCUSSION, page-1704

That’s a good point Shell. However, we previously signed an offtake that had the clause that the customer can purchase “up to 2500T” once construction is completed.
Why isn’t management executing similar offtakes under the implementation that they can start to purchase once expansion is completed. Again, not to be a nuisance, but I don’t share the same sentiment that there is a massive interest from Ex-China as there hasn’t been any additional purchase orders executed over the last 5 months they have been promising. There is interest, but not the way management make it out to be.
If each sale is going to take 5months+ of negotiation and product testing, that is A LONG timeframe to work with for single purchase orders and not for minimum supply agreements. Again, I could be wrong, but the only purchase orders we are filling at the moment is a single purchase order and isn’t re-curring. Hence I can only go off what we currently have.
If management is going to go through so much trouble creating specifications for customers for testing, they better be charging the potential customer for the test samples especially if it’s for things that take this long and they can just walk away going “no thanks” after the JV incur all the costs.

With current capacity being at 2000TPA that gives about 166T monthly on average. So if we had single purchase orders that came through for a quick turnaround we would probably struggle to fill that as quickly as we may have wanted. So I get it. But we aren’t operating anywhere near that scale at the moment and we still have effluent removal not helping us to reach that capacity. So why were we so persistent to transfer money to the JV when it should receive invoices for $1.2m from first shipments to cover its operational costs till external delay factors are removed? If that 750k was sitting in EVG balance sheet instead of the JV for the time being whilst we had news flow for permit renewals etc investors would’ve had more confidence?

What’s going to be the selling point for the next CR at this rate? We have about 2.5 quarters of funding left considering cash burn remains at current rate.