Are you new to the EXRO story? Read our introductory post here
EXRO has announced another agreement, this time with a European partner to develop and deliver an engineered-to-order system that incorporates the Coil Driver system.
(If you’re unfamiliar with the Coil Driver check out our previous post that explains the demand case for this system here)
Exro will be delivering sample products by the end of Q1/23 which could add another positive data point for the investment thesis. The initial agreement is for 8-10K coil drivers annually but there is no clarity on which voltage they will be. Due to the price difference between the 100V ($2250) and the 800V ($25,000) it's hard to know just how much this agreement is worth as you can see by the chart below.
While the scope of this contract isn’t clear what is clear is that the team over at EXRO continues the positive momentum of de-risking the product as well as the demand picture. This latest news follows the announcement on September 27th that highlights the exceptional rating for energy storage safety (press release here) as well as the Linamar announcement earlier this month (4Front article here).
It’s no surprise that the stocks recent performance has it trading close to the last raise, priced at $1.05 and consisting of one share and one full warrant. As you can see in the chart below we’ve had some nice price action over the last few weeks despite an overall market moving lower. What’s also reassuring is that the move from $0.74 to $0.98 was on increased volume.
Momentum has also seen a shift upwards, shown by both the MACD, where the MACD has broken above the signal line and in the RSI, which shows us moving out of oversold territory in mid September while still having some upside before things start looking overbot.
Disclaimers
4Front is compensated by Exro for the preparation of these materials. 4Front receives its compensation in cash and does not own any shares in Exro.
4Front publishes 4Thoughts for the purpose of investor education. All statements presented herein are the sole opinion of 4Front Advisory and/or the individual author. The intent of 4Thoughts is to provide insight and analysis into our clients’ businesses, strategies, opportunities and risks.
4Front Advisory is not an investment advisor, and comments and opinions presented in 4Thoughts should not be interpreted as investment advice. Investors should pursue their own due diligence regarding the merits if any potential investment decisions for companies discussed herein. Investors should seek advice from professional financial advisors before making any investment decisions. 4Front Advisory does not express any opinion with regards to the price of securities of any company may trade at any given time.
Forward estimates, macroeconomic commentary and forward-looking statements are based on assumptions and individual analysis and interpretation and thus are inherently unreliable. Commentary is based of information available as of the time of writing, and other events and externalities may subsequently occur that materially change the interpretation presented.
4Front Advisory does not accept any liability for any direct or indirect loss arising from commentary and opinions provided herein.
This article, and any item we publish or on behalf of our clients, and should not be construed as an offer or solicitation to buy or sell products or securities.
Occasionally, reference may be made in our published materials (online commentary, website, presentations) prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. Readers acknowledge previously published information and data may not be current and should not be relied upon.
The agreement isn’t for any amount of drivers. It is a pilot project which potentially could lead to sales. But, EXRO hasn’t established a record of turning pilots into contracts.