QS Energy Inc (QSEP)

[alkalinesolution1]

Still not clear what they can do with the extra shares.

The letter says

"once we achieve true market adoption, we will need growth capital to fund expansion of our AOT inventory and manage corporate growth"

and

"To this end, in addition to using our common stock, we plan to use preferred stock to provide initiative-based offerings, which could command a higher price and be less dilutive than common stock offerings due to credit-enhancement, dividends and other preference features."

I don't really know what this means in plain language.

The additional shares will be used to..... ???

Why is stock necessary to raise money to fund manufacture of AOTs? If we get an order, then someone will loan the money. Simple. Multiple orders means millions of dollars just like that, and the company would then be in a position to get lines of credit, or whatever it might be.

If the stock won't be used for selling shares to new shareholders to keep money coming in, what will it be used for?