Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : VALENCE TECHNOLOGY (VLNC) -- Ignore unavailable to you. Want to Upgrade?

To: Brad Davies who wrote (22269)	11/12/2000 3:52:42 PM
From: Rich Wolf	Read Replies (1) \| Respond to of 27311

Financing: Lev's only comment was that they had not yet tapped into Berg's loan. If he is able to obtain more IDB money, that would help. Fair guess is that he needs to begin shipping more finished cells, to another customer besides G*, to obtain significant amounts from the IDB. The existing Belcore licensees owe nothing to Valence unless they begin producing (none are, in any volume). But it is possible that some will accept Valence's offer of the technology license as well, and make up-front payments. This could occur in connection with a possible buy-out of Hanil by another Korean company, if Hanil throws in the towel now that Lev has left them to compete on their own against larger and more experienced Korean firms. Lev also mentioned firms with whom Valence had almost initiated joint ventures; if these firms become licensees of the technology, again there could be up-front payments. So, you are correct to raise the issue of financing. One of the questioners on the call tried to suggest to Lev that perhaps the schedule slippage for the equipment delivery was due to funding issues, and/or Lev's desire to focus on licensing, but Lev strongly suggested otherwise, relating his displeasure upon hearing of the schedule slippage from the German supplier. Many unknowns. Lots of 'fence sitters' in on the call. Much less bullish tone from many of the questioners. Lev promised laptops again 3 months ago, and again has apparently taken away the promise in the near term. The Klockner should be free to manufacture such cells, if only Lev can obtain automated packaging equipment for the large format cells. However, the strong intimation is for a need for 'second sources' before anyone steps up to commit to a design based on such format of cells, hence the focus on licensing.

To: Brad Davies who wrote (22269)	11/12/2000 5:27:43 PM
From: Tickertype	Read Replies (1) \| Respond to of 27311

To add to Rich's comments, in response to a question regarding financing for the next several quarters Lev replied "we have plenty of offers".....after which he said the IDB had been in their offices this week for the formal part of their audit prior to issuing funds and will be issuing money "very shortly and that's $30 million available." Doesn't sound like they're in any immediate need for new financing, and Lev said he'd like a healthy (stock) price before raising any money, "IF we raise any money." He expects costs to continue to drop and production to continue ramping, lowering their cash needs. - T -