Repost from Stocktwits, courtesy of sudhK.
Quote:
"From what ADN said about Green Hipo review process by Greek state, my speculative position is that, once ADN receives the funding documents from Greek state (document with details on funding schedule for green hipo over next 4 years and funding amount each year), ADN might use this state approved doc as collateral to access the long term low cost loan from hydrogen funds either from EU or US. By doing so, ADN will try to get the confidence of the investors and try to unlock the value of the company (market cap) inline with green Hipo assured funding arrangement of close to 800 USD.
With Green Hipo finding + additional couple of long back signed MoU turning into sales order, company would try to get its market cap around 1Bn $ before it thinks of diluting stakes, at that valuation to raise 50 mn USD, it just need to dilute 2.5% stake oppose to now well over 100% dilution to raise 50Mn USD & even with reverse split strategy company would face mounting challenge to meet min bid requirement of 1$ if they dilute now, so it would be stupid for company to throw away stocks at such a low valuation currently.
They have done long list of govt projects in EU and US, with that reputation and with Green Hipo funding assurance document from Greek state, they can easy rise long term low cost fund, which they can close it with 2.5 to 5 % dilution when the company get to Bn $ club. With almost 800 Mn USD funding over 4 to 5 years, its not really hard for company to get into Bn $ club as HT-PEM is very relevant product for decarbonizing strategy for EU and USA and Hydrogen space is already heating up. I believe company went ahead with expanding Authorized shares & couple of ATM deals , all seems to be aimed at future long term needs, Its really stupid for company to dilute the ownership with such a low valuation while they have other viable option to raise fund if they need on top of Green Hipo funding to help.
With regards to Green Hipo, that is done deal, once election gets over on 25th Jun, narrative will change, no going back on green hipo, all countries sort of fighting for developing hydrogen, if Green State go back undoing all progress they made with EU over coupe of years on this project, it would be suicidal for greek state to loose this funding to other EU state, I expect things will look good once election get over next weekend in Greece. Again I believe Green Hipo is done deal (no more if and buts)."
