Extreme Vehicle Battery Technologies Corp. (CSE: ACDC) is a blockchain and battery technology company with revolutionary, patented battery management systems (BMS) designed to meet the growing demand for scalable, smart solutions for the rapidly growing electric vehicle (EV) and energy storage solution (ESS) markets.

Key updates:

• Decline in cash balance: At the end of Q3FY22, the company reported its cash balance of CAD 0.90 million, which is significantly lower than CAD 2.20 million in Q2FY22. A lower cash balance might lead to liquidity crisis, which remains a major concern.

• Update on cryptocurrency mining segment: The company is planning to initial tranche of 100 ASIC miners to be delivered to its facility in mid-March and will be commissioned into the first mining enclosure over the following four to eight weeks. Hence, the company is planning to add an average of 500 kW per month of ASIC capacity in the next six months, which is expected to result in an additional 3,500 kW of mining capacity.
  

Stock Recommendation:

The stock of ACDC is tumbled ~54% and ~69% in the last three months and six months, respectively, which suggests a strong selling pressure. The company operates in EV business, which is expected to gain traction in the coming years due to growing dependence on alternative sources of energy in order to preserve environment. On the flip side, the company is yet to report a stable income from its operation and hence we prefer to remain on the sidelines. Considering the aforesaid facts, we give a ‘Watch’ stance on the stock of ACDC at the closing price of CAD 0.085 on February 02, 2022.

One-Year Technical Price Chart (as on March 02, 2022). Analysis by Kalkine Group

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