TheEEStory.com

For some time now, the information from EEStor has been only the bare minimum to satisfy Zenn's public obligations related to the tech agreement, milestones, and milestone triggered financial moves.

Will EEstor do anything extra to help Zenn in the near term reduce the apparent risk to Zenn shareholders? This would make the new stock offering a great way to get funds to make Cityzenn parts orders.

I think it's possible. What good does it do to start delivering EESU's when your customer (and 10% shareholder) is on the ropes and unable to manufacture and sell something quickly because they are low on cash?

Easy question, will EEStor say anything extra to help Zenn? Please limit responses to yes or no and why.

Yes, EEStor should become more open with information from now to December. This is because Zenn, when it 'launches' the CityZenn, needs the focus on the car, not on whether the EESU allegedly inside of it works or otherwise. If EEStor remains silent, it will literally kill the launch of the CityZenn.

When I say that, I mean in the mass consumer's eyes. Those are the people after all who will be shelling out their hard earned dollars on technology that at least in their minds is new. Confusing the message with a mystery 'battery' would only make the marketing that much more difficult.

Does EEStor want that, very doubtful.

I hope so.

After all Zenn has done for EEstor these past few years, EEstor owes Zenn a solid.

No, I do not see anything EEStor can do to help other than prove ED through a third party and I think that will pretty much have to go along with delivery of a working unit to Zenn.

hbert wrote:

No, I do not see anything EEStor can do to help other than prove ED through a third party and I think that will pretty much have to go along with delivery of a working unit to Zenn.

In other words, Zenn's launch of the CityZenn will be dead if the EESU is not delivered to them, publicly, BEFORE the launch.

I hope that EEStor does something to boost Zenn before the next stock offering.

pgl wrote:

hbert wrote:

No, I do not see anything EEStor can do to help other than prove ED through a third party and I think that will pretty much have to go along with delivery of a working unit to Zenn.

In other words, Zenn's launch of the CityZenn will be dead if the EESU is not delivered to them, publicly, BEFORE the launch.

The EESU delivery is the next milestone. Yes I do think that will be made public and will be the next EEStor happening. ED on a component by a 3rd party would be nice but that does not seem to be Dick Weirs way of doing things.

I could see them throwing Zenn a bone and making some minor announcement pertaining to the results of the tests that they are doing over the next 3 months. Just announcing that they are sending components (not the conponents) to UL or something like that could give Zenn a nice little bump for their offering.

I think EEStor's next PR will be delivery of the EESU. I have no idea if that will be before or after Zenn's stcok offering or the unveiling of the CityZenn.

EEventually wrote:

I think it's possible. What good does it do to start delivering EESU's when your customer (and 10% shareholder) is on the ropes and unable to manufacture and sell something quickly because they are low on cash?

Zenn isn't EEStor's only customer, and if Zenn were to fold, there would be another customer to take their place. If EEStor can deliver EESUs they will have no shortage of customers lining up with money, Zenn or not. I'm pretty sure LM can find a use for a few of them for instance. This is not to say that Dw is looking for Zenn to sink. Just saying... if EEStor can deliver EESUs, Zenn needs EEStor much more than EEStor needs Zenn.

They better do something for Zenn before the new stock offering! Or Zenn better at least wait until they give the goods up. To offer them at a reduced price because of the last press release would be really dumb. That would mean they could have did the offer before this press release and got more money. Because there is no way they thought that last press release was going to increase the stock price.

MY PREDICTION: EEStor will reveal ED in a press release. This will give Zenn a big stock price boost just before the new stock offering. But it will also keep everyone guessing still because they won't show any proof of ED.

If past history is a guide then there will be a bone. But we won't be sure what it's from or if it's real.

Just one possible hypothesis ....

But E_Po may have no good reason to smile and he certainly has no right to. From where I am sitting "technology risk" hasn't changed.

I have been travelling for 36 hrs and when I have landed how fascinating is it for me to find these posts ?!!!!

So we now have the stuff on the table of which for me at least, both dreams and speculation are made :-)

So why don't I add to the pot. What hasn't happened?

The first is that no-one appears to have sold their stakes in either ZMC or EEStor. The second is that no-one (only ZMC) have taken up the option to increase their EEStor stake.

ZMC has arguably the inside running on the use of the EESU technology, if and when it is available. ZMC now has a credible percentage in EEStor at approx. 10%.

Now think like investors guys. None of you on this string are yet. What does this open up?

There are only two parties whose game is on the move. One is ZMC for whom the raising of funds appears (from their public statements) to be their next move. The other is MT who has "cleared the decks for action" by resigning as a director of EEStor. (i.e. no longer with insider trading knowledge)

Before discussing this let's first look at the side show.

What about the other three parties (other than KP who probably had no right) who could have exercised their rights? Well, they didn't; which suggests at least four possible motives. The first is that they outright didn't have confidence in the EESU. The second is that they did not have rights of disclosure on the progress/success of the EESU. The third is that they did not have the funds (times are tough), and the fourth is only that their main pre-occupation is with avoidance of stake dilution.

What we do know is that if the EESU is for real, the Obama energy gravy train will fund EEStor to the hilt. So this tidy up of the capital structure may be the last major play before we have "lift-off". All that may have happened is the tidy up of EEStor capitalisation and funding in a way that had been contemplated by the parties a couple of years ago - perhaps they are all hanging together tighter than before. (hey you can't blame a guy for dreaming).

So now all the key players could well have firmed up on their stakes in EEStor.

Lt's return to ZMC insiders who must also be concerned about the dilution of their equity in ZMC. The size of funding needed for ZMC is sufficiently great that one could see perhaps only two likely possibilities for fund raising. The first being the raising of funds from insiders or anyone else who knows what is happening. The other is that they take pot luck on what the market will offer for a highly illiquid share.

Note the word "illiquid". There has been no significant movement in the ZNN price for some time. The smart money and the insider money is going no-place.

It is a while since ZMC announced it's preliminary intent to raise capital.

A longer while since MT resigned from EEStor. So there are three substantial players on the sidelines who probably do know what is happening. MT, KP and LM.

Would any of these want to buy into the company with the first mover rights to utlitise technology where preservation of first mover advantage is demonstrably a key stratagem?

Alternatively, would IC want to water down his holding where the open market price could otherwise be as low as CAD1.50-2.00?

We have seen what could be the side shows, but what is the main event going to show us? The main event will be the price asked for shares and the degree of dilution palatable for the insiders.

On "techology risk" Y_Po may be right or he may be wrong - and either way I am not fussed. But remember Y_Po, he who laughs last, laughs longest and you may well yet be wrong over technology risk.

But to me, the move at 4.50pm on 2 July is not about technology, it is about business.

EExhausted wrote:

Eestor will not help ZMC because they have nothing to show the public. THe product doesn't work, just ask Y_Po, EETom, Mort and all the investors who declined to increase their investments.

Please provide us with your (any) evidence in support of your statement. Unless of course you are being sarcastic, in which case, just enjoy the music.

With all "investors" sitting on the sidelines, except for zmc, that has no revenue to talk of, forget about 10mil, I can't stop but wonder, are the leaders at zmc deluded or are they fraudulent that they up the ante?

I still tend to give EESTOR/zmc credit that they are genuinely deluded, but i start to doubt their genuineness :)

And guys, of course the product doesn't work, or even exist. If it was they would at least SAY it worked, no?

Well said, Energy Investor. I raised the Mort Topher leaving to be on the "outside" point before but nobody bit. I think this reason makes the most sense of all for him to leave a second time. I wonder, did he leave prior to a big bump last time too?

As for the people that think the sky is falling due to some people not exercising some common share options (which aren't even verified to exist), I'd hold on to your wallet. Things are going to get weirder before they make any sense, methinks, and as EI pointed out earlier in this thread, the other potential investors probably held out for GOOD BUSINESS reasons, not bad tech reasons.

No, EEStor will continue to play it "close to the vest" as they have been, because their business model depends on maintaining secrecy for as long as possible. They may demonstrate their tech in closed VC seminars, but not to the general public. If ZMC needs a public boost, EEStor will issue another press release re-wording what they've previously stated, as they have already done at least once.

EEventually wrote:

For some time now, the information from EEStor has been only the bare minimum to satisfy Zenn's public obligations related to the tech agreement, milestones, and milestone triggered financial moves.

Will EEstor do anything extra to help Zenn in the near term reduce the apparent risk to Zenn shareholders? This would make the new stock offering a great way to get funds to make Cityzenn parts orders.

I think it's possible. What good does it do to start delivering EESU's when your customer (and 10% shareholder) is on the ropes and unable to manufacture and sell something quickly because they are low on cash?

Easy question, will EEStor say anything extra to help Zenn? Please limit responses to yes or no and why.

Yes. Because they are ready to do so.

eestorblog wrote:

Yes. Because they are ready to do so.

That would be fantastic.

In addition to energy density figures from EEStor, another thing that would help Zenn is for KP to reveal its true stake (especially if it really is as high as 30 per cent) and its continued belief in EEStor and the EESU.

Any chance of this happening too?

bitslider wrote:

Well said, Energy Investor. I raised the Mort Topher leaving to be on the "outside" point before but nobody bit. I think this reason makes the most sense of all for him to leave a second time. I wonder, did he leave prior to a big bump last time too?

As for the people that think the sky is falling due to some people not exercising some common share options (which aren't even verified to exist), I'd hold on to your wallet. Things are going to get weirder before they make any sense, methinks, and as EI pointed out earlier in this thread, the other potential investors probably held out for GOOD BUSINESS reasons, not bad tech reasons.

Unless I misremember my Securities law, his former Board status has no real effect other than to bar him from profiting on short-term trades. (A shareholder derivative suit will claw back any gains an insider makes from short-term trading).

The "insider trading" issue of concern to him is the fact that a party with non-public information cannot trade on it, and it makes no difference whether they are Board members or not.

bitslider wrote:

Well said, Energy Investor. I raised the Mort Topher leaving to be on the "outside" point before but nobody bit.

energy investor wrote:

... But to me, the move at 4.50pm on 2 July is not about technology, it is about business.

Business wise, most would agree, that it be in Zenn best interest to invest regardless of EEStor outcome.

When existing EEStor investors don't ante up (except ZMC) and MT Leaves the board of directors, EEStor outcome from a outside business looking perspective looks less likely.

Daniel R Plante wrote:

bitslider wrote:

Well said, Energy Investor. I raised the Mort Topher leaving to be on the "outside" point before but nobody bit.

Topfer Leaving - comments

Yeah, so did I - nobody bit. :)

Just read it. Excellent post, Daniel :)

Eestorblogger wrote:

Yes. Because they are ready to do so.

Having followed your blog for a long time now, I believe this is a fair statement. However, it is a fairly bold statement nonetheless. Are you able to elaborate with more detail or are you speculating along withe the rest of us? I do occassionally poke a bit when I think you might be acting like a bit of a tease. BTW, thanks for your continuing efforts!

Last edited Sat, 04 Jul 2009, 10:21pm by pgl

I've thought about it, and I vote no. EEStor has enough money to keep working on the EESU until completion. Upping the value of ZENN has little meaning to EEStor at this time (IMHO)

Bretspot wrote:

I've thought about it, and I vote no. EEStor has enough money to keep working on the EESU until completion. Upping the value of ZENN has little meaning to EEStor at this time (IMHO)

Based on b's latest blog post and the history leading up to today, the idea that EEStor isn't already 'done' is becoming less and less likely in my view.

I believe we will be seeing the sparks flying before too much longer.