BASF Today's investment in Quantafuel is strong message
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Two weeks ago Quantafuel sold off due to a delay of Skive continues production. Investors viewed this as increasing uncertainty over Quantafuel ability to chemically recycle plastic.
Today, Quantafuel announced that BASF converted their convertible loan into shares of Quantafuel. I view this as very positive. BASF knows more about Quantafuel more, than anybody else. They have been helping Quantafuel since the start and have they staff permanently at Quantafuel plant. The fact BASF decided to convert loan into equity is a strong vote of confidence. The press release provided the below quotes:
"After further equity injections by third parties and in the course of continuously optimizing BASF's financial investments, BASF decided to convert the loan into new shares," says Dr. Lars Kissau, Senior Vice President Global Strategic Business Development at BASF's Petrochemicals division. "Quantafuel's technology remains an important building block for BASF's ChemCyclingTM project with the aim to use pyrolysis oil as feedstock in chemical production."
"We are happy that BASF have decided to convert the loan into shares, making them our largest shareholder. We are very much looking forward to the continued cooperation," says Ann-Christin Andersen, Chair of Quantafuel's Board.
I believe the Quantafuel shares reached bottom today. The shares should start re-rating, as investors digest the importance of today's announcement.
The main message BASF is send in us is: BASF is confident in Quantafuel ability to deliver. I believe investors should listen.
Wait for a string of good news from Quantafuel and proof of concept, that should be comming soon.
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This was a no brainer from BASF since they could convert to under half the price of todays shareprice. So in it self I don't value this particular high.
I stille se a quiet period for QF the next month where the factory is closed for summer vacation, and they are still waiting for a component to start up the factory again. Therefore, I would not be surprised if the shareprice will keep sliding back to around 30, and maybe a bit below before potential POC announcement mid to second half august
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I disagree. If BASF would not believe in the company, they would not convert. They could have waited.
If they would not believe in the technology, they would not do it.It is also not correct that they are waiting for a component to restart. I believe they will achieve proof of concept using the current equipment.
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Believing in them or not, anyone would convert when you are guaranteed more than 100% on your investment.
It was the company them self that mentioned that they are waiting on a component, and that it takes longer time to get it delivered because of covid.
Also one of the neighbors to the Skive factory have mentioned that the factory has been almost closed down for one month. That suits with the rest of the story that QF mentioned themselves. -
BASF is not speculator. Do read what BASF said in Quantafuel press statetment.
QFUEL said that for the full plant full operation they will need the new filters.
QFUEL did not say, that they need the new filters for proof of concept. Do read what they said on their FB already in May. They were running at full capacity. I believe the announcement should come quite soon. -
No the company specific mentioned that some broke down in the POC test and that they are waiting for new component, and did blame the Covid situation on the long delivery
The factory do not have the people to run 24/7 operation through the Danish summer vacation. So it will be shot down for 2-3 weeks. To run 24/7 operation (5 shift) during summer vacation demands a larger workforce that you typical only see in really big companies like BASF itself
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Now we actually just hit 30 clean. So yes still the dripping trend going down. Suits me fine. I bought my first shares in the company last week and still need to buy 1/3
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Quantafuel omtales her.
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