10% interest on conv notes and the discounted issue price means that they are the main beneficiary of this company gaining traction for the immediate future and probably fair enough as no one else would finance them . Allowing a further 10% gives management a option to raise more $ in theory but they will probably go same path for simplicity?
Unless they get large volume of sales than normal holders will struggle to get a return IMO as with conv notes will hold em back with possible overhang and possible issue of more notes if cash dries up ?
Will be interesting if these guys can get any sales momentum that is profitable with cost base they have and how consistant it becomes.
I see so much advance for on road regeneration with capacitors and regeneration braking being developed and introduced by majors using standard components integrated into their tailshafts, gearboxes and electronics that I am not sure if onroad industrial market can be a target for them unless these other peopel need part of the IP portfolio ABV should have?
Off road they have a niche market that loves rugged simple non electronic mechanic solutions but as time marches on and skill level mechanics in remote areas accept all sorts of other solutions that are durable . Will be interesting to see how these guys can hold market if competition appears.
Recreational market has margins but not sure where those margins are shared between wholesaler and retailer and real volume of market. With a large recreational market and commercial recreational market the issue I still see is having compatable after market which complies with all local rules in every company for on road use and installation cost and certification by engineers and govt departments is not so expensive that the end user gets a return on investment with years of use and KM they travel.
Would I buy and use them if I was doing lots of sand and surf work? Yes but pricing need to be correct and I am not sure what % of market they can get . Running a torb bus or 4wd rentals - yep I would as downtime kils those businesses but only when there is a true time of cost advantage so they need to present real life examples of savings to a company.
