Just a short observation that the deal was done on Sept. 1 when LUMM was trading at $4 3/8 - $4 1/2. So the discount then was about $0.50. Not bad! It looks not so good lately with the trades at $8, but that's because of LUMM's rapid rise since Sept.1!
LUMM advises me that they need the funds provided by this PP to gear up for increased production! Some equipment needed, while regularly available in the IC field, requires an order to be placed 6 - 9 months in advance, for a mask aligner as an example. Thus the need for planning that much at least in advance.
Where will this new factory be located, I asked. Montreal, the US, Europe, Asia? No decision has been made, was the reply. Do you have financing plans for the costs involved? Yes, we have firm indications from US sources that $25MM is available for the asking!! Nice, and some vote of confidence!! The founders, BTW, are not dog and pony show enthusiasts, and this type of financial arrangement suits them just fine.
New equipment in the chip business can turn out a chip a minute, or 500/day, which is a big increase over the production start target of 20/day.
From all this I get the definite impression that testing in the pilot plant has proved the concept, and it's full steam ahead toward some fairly major expansion!
I wonder if the Wall Street Journal and Barron's know about LUMM's activities yet!!
Cheers,
Don |
