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CNBC Interview with Silvio

I still don't understand on a long-term asset like a factory they aren't financing it instead of just burning cash...
 
illopp00 said:
I still don't understand on a long-term asset like a factory they aren't financing it instead of just burning cash...
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They would have trouble financing it due to their current financial position.
 
I know this will be controversial, but the best part is owning up to needed a capital raise now. Instead of playing coy. Just do it. I appreciate that they want to do it in a shareholder friendly manner, but it’s most important to remove this specter of bankruptcy. It impacts shareholders, it impacts future buyer, it has to impact supplier relationships/financing. Just get on solid footing
 
nashvillelucid said:
I know this will be controversial, but the best part is owning up to needed a capital raise now. Instead of playing coy. Just do it. I appreciate that they want to do it in a shareholder friendly manner, but it’s most important to remove this specter of bankruptcy. It impacts shareholders, it impacts future buyer, it has to impact supplier relationships/financing. Just get on solid footing
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...and, there are many, many ways to "raise capital." It doesn't have to create dilution of stock. It's obvious they will need more cash and he acknowledges it. I don't think Lucid has decided how to do it yet - analyzed their alternatives, but no need to make that decision yet.

Dream Ahead!
 
They just tapped in 800 million of PIF credit , is not it this shareholder friend


Also they have another credit from Gulf International Bank (GIB) which is about 30 million

I am sure they can negotiate using pif name somehow.
 
Moreover I think PIF can pressures SoftBank vision fund to dip their toes as well :)
 
illopp00 said:
I still don't understand on a long-term asset like a factory they aren't financing it instead of just burning cash...
Click to expand...
What’s in the best interest of the company may not be in the best interest of the KSA. Every decision needs to be evaluated through that lens.
 
nashvillelucid said:
I know this will be controversial, but the best part is owning up to needed a capital raise now. Instead of playing coy. Just do it. I appreciate that they want to do it in a shareholder friendly manner, but it’s most important to remove this specter of bankruptcy. It impacts shareholders, it impacts future buyer, it has to impact supplier relationships/financing. Just get on solid footing
Click to expand...
It’s not exactly a bold or courageous statement. They’ll run out of money long before they’re profitable. Not acknowledging this would destroy Napoli’s credibility.
 
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