Nothing that is going to fly soon, but very interesting:
Lithium Technology Corp.--LITH
Stock Symbol: LITH ? fully filing
Float: 9.6 million
5115 Campus Drive
Plymouth Meeting, PA 19462-1162
(610) 940 6090
Web site: lithiumtech.com
Other info:
biz.yahoo.com
biz.yahoo.com
biz.yahoo.com
pacificlithium.com
LITH is in the late stages of developing and commercializing rechargeable solid-state lithium-ion polymer batteries. These batteries and their technology are extremely well suited for cellular phones, laptop computers, and even hybrid vehicles. Being one of the only ?pure plays? in this area, LITH believes its battery?s technology offers higher energy densities, lighter weight, and improved run times. The company boasts 26 patents, 10 patents pending, and 60 new patent applications for their technology, putting LITH well ahead of the competition in manufacturing efficiencies, including yield and cost advantages.
LITH has initiated and been approached by Original Equipment Manufacturers (OEMs). I have been told LITH is in ?talks? with,?major cellular, laptop, and vehicle manufactures? including a ?top ten? personal computer manufacturer. NASA has, with success, tested the larger batteries, adding to the credibility of the technology and LITH.
On the ?brink? of commercialization : The last piece of capital equipment is in route from Italy. Upon arrival, manufacturing on a large scale can commence. And there are buyers!!
In layman terms the batteries are almost like silly-putty, in that they will not leak, like lithium liquid batteries. LITH?s batteries can also be formed to almost any shape, so as to allow smaller phones or for the battery to be hidden behind the video screen of a lap top computer?..very versatile. (I don?t know if they bounce?)
So the product sounds great, the float is tiny, and the price is low. Whats the catch? LITH is doing a vertical merger with Pacific Lithium of Auckland, New Zealand ? a world leader, if not the leader, in the production of raw materials for lithium batteries.
The OTCBB market hates unknowns, and the complete details of the merger have not been released. But this is some of what we do know. Pacific Lithium (PL) has assumed responsibility for all LITH?s capital requirements, including operating cash flow and capital equipment. Upon shareholder approval (which is mostly to occur because if PL backs out, they lose their investment in LITH, and if LITH backs out, LITH pays back the cash owed PL with 10cent shares.) the assets and operations would be transferred to PL, which would reincorporate in the US as a private company named Ilion Technology Corporation. Ilion plans to consummate an IPO and float its shares on the NASDAQ. Once the merger is complete, LITH would become a tracking stock or ADR, whose sole assets would be shares and warrants of PLL issued in the merger. LITH?s stock would continue to be traded in the OTC market until the IPO. The company expects the business merger to be closed during the first quarter of 2000.
pacificlithium.com
While it is not possible to judge the shareholder value in this deal, I have tried with the limited information available. It has been said that PL will pay $NZ15 million for the outstanding shares of LITH. That works out to a theoretical new book value-sort of speak of about 19 cents a share. This does not price in any future earnings of PL which LITH shareholders will own 15%. ( I will not go into multiples of future revenue, lets just say LITH is undervalued at this point in my opinion.) Look at MHTX, DCHT, PLUG, and other ?battery? companies.
I am a shareholder of LITH and may be bias. I suggest you research LITH and decide if it fits your risk tolerance level ?this is very speculative. And the exact terms of the merger are unknown, and may have a positive or negative effect on the stock.
I have in the past picked XNET @ .87, GTCI @ 1.10, ZICA @ .87, MHTX @.47, CAOL @.80, and DFNL@ .81-still waiting on that one??.this is by no means a guarantee of performance.
I will be happy to answer any questions you have : khristian@home.com |
