Advent Technologies: Prepare For Dilution Later This Year

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Advent Technologies Holdings (NASDAQ:ADN) aliases "Advent" labels itself "an innovation-driven leader successful nan substance compartment and hydrogen exertion sectors" but has predominantly been employing a roll-up strategy focused connected high-temperature polymer electrolyte membrane ("HT-PEM") technology.

HT-PEM substance cells don't require axenic hydrogen and tin grip almost immoderate low- aliases zero-carbon fuel. In addition, Advent asserts its exertion to beryllium highly resilient and alteration a much businesslike power management.

Company Presentation

Advent utilized nan 2020/2021 ESG hype to get a backdoor listing by combining pinch SPAC AMCI Acquisition Corp. successful February 2021.

The transaction raised an aggregate $158.3 cardinal successful capital, including $93.3 cardinal of AMCI's rate successful spot and $65 cardinal from a PIPE finance led by Jefferies LLC and Fearnley Securities.

Over nan past 2 years, nan institution has spent astir of nan costs for covering operating losses arsenic good arsenic a number of acquisitions. At nan extremity of Q3/2021, rate and rate equivalents were down to $42.5 million.

Considering nan existent $11 cardinal quarterly rate pain complaint stated by nan CFO connected nan company's expert time past year, Advent would tally retired of costs successful nan 2nd half of this year.

Adding reproach to injury, nan institution will autumn good short of its original $23 cardinal income projection for 2022 allegedly owed to delays successful anticipated backup powerfulness strategy deployments successful Asia and little than expected authorities grants.

Keep successful mind that guidance really raised expectations connected nan Q2 convention call pursuing nan €782.1 cardinal EU backing ratification related to nan company's large-scale Green HiPo task successful Greece:

Company Presentation

Unfortunately, nan complementary "White Dragon" project appears to person been shelved for nan clip being frankincense causing important uncertainties regarding nan implementation of Green HiPo.

Moreover, it is important to statement that nan Greek authorities backing will screen beneath 20% of nan anticipated full €4+ cardinal investment required for Green HiPo.

Raising €3+ cardinal successful further backing looks for illustration a Herculean task for mini Advent Technologies, peculiarly erstwhile considering nan company's very anemic financial condition.

According to statements made by guidance connected nan Q3 convention call 3 months ago, discussions pinch nan Greek authorities person been "progressing" but successful opposition to management's expectations, nary update has been provided since then.

Bottom Line

Given evident delays successful authorities grants and ongoing, elevated rate usage arsenic good arsenic constricted entree to nan firm indebtedness markets, investors will apt person to hole for important dilution successful nan 2nd half of nan year.

Consequently, I would counsel readers to debar nan shares aliases moreover see trading existing positions.

I americium mostly a trader engaging successful some agelong and short bets intraday and occasionally complete nan short- to mean term. My humanities attraction has been mostly connected tech stocks but complete nan past mates of years I person besides started wide sum of nan offshore drilling and proviso manufacture arsenic good arsenic nan shipping manufacture successful wide (tankers, containers, drybulk). In addition, I americium having a adjacent oculus connected nan still nascent substance compartment industry.I americium located successful Germany and person worked rather immoderate clip arsenic an auditor for PricewaterhouseCoopers earlier becoming a daytrader almost 20 years ago. During this time, I managed to successfully maneuver nan burst of nan dotcom bubble and nan aftermath of nan world waste and acquisition halfway attacks arsenic good arsenic nan subprime crisis.Despite not being a autochthonal speaker, I ever effort to present precocious value investigation astatine nary complaint to followers and nan full Seeking Alpha community.