timeline and upcoming prospectus.

Howdi,

Starting my research into ERJ...

Seems like a fairly good deal...

Buy boxes from overseas.
Install box at a clients site for free.
Sell cheap energy to client.
...
Win.

However, what sort of timeline are we looking at? I mean, they have one box coming over atm... but, they would obviously want a substantially greater number of boxes to become profitable. If the pre-feasability, and feasbility study, is positive (presumably A+)... how long till we can turn a profit? Realistically, 24 months from now?

I think I'll end up buying $1,000 of ERJ... but, we'll see.

Moving on to the upcoming prospectus. I don't understand this. Is this a precursor to a secondary public offering? Or is it a SPP / rights issue?

They seem confident they can issue shares at at least 20c... which is 33% above current market price... which, in anyones book is optimistic...I read somewhere that they don't need this cash... but then why would they do an offering?

I guess, I see the biggest risks are:
Further dilution (Company seems to much prefer issuing shares than debt..... my corporate finance thoery tells me to be careful around these firms!)...
Manager selfishness (Management don't seem scared to issue options and shares to themselves at below market value...)
And, of course, the technology not being useful.

Notice how the technological consideration is third...?