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 exponentially growing demand for scalable, smart solutions for the rapidly growing Electric Vehicle (EV) and Energy Storage Solution (ESS) markets.

Key Highlights

• Progressing to become leader in EV Infrastructure: The company and its subsidiary, IONiX Pro Battery Technologies Inc., recently announced the launch of the IONiX Pro Smart Station, a new electric vehicle (EV) charging solution. Governments throughout the world are beginning to introduce incentives to support the creation of EV infrastructure in order to satisfy the growing demand for more EVs, according to the organization.

• Unveil a carbon negative cryptocurrency mining machine: The Company is now shifting its focus more on blockchain technology applications. Recently, ACDC together with its subsidiary IONiX Pro and in collaboration with the ROBe2 Protocol, have introduced the world’s first carbon-negative crypto miner, the Smart Miner. This collaboration is an effort to further develop crypto mining keeping environment in mind. Any delay or failure in the success of Smart Miner would cause hefty loss.

• Acquiring large-scale crypto mining infrastructure company: On November 22, 2021, the company entered into a Share Exchange Agreement to acquire Optimal CP Inc., a company focused on the development and management of crypto mining facilities, for a deemed transaction valuation of CAD13.75 million.

Financial overview of three months ended July 31, 2021 (Expressed in Canadian dollars)

Source: Company

• During the three months ended July 31, 2021, the Company earned zero revenue, same was the result in the previous corresponding period.

• On the back of higher advertising cost at CAD 1.71 million v/s CAD 0.38 million and higher R&D expense at CAD 0.24 million along some other operating expenses, the company posted its consolidated expenses of CAD 2.3 million against CAD 0.60 million in pcp.

• The net loss in the reported period escalated to CAD 2.3 million compared to CAD 0.6 million in the previous corresponding period.

Risks associated with investment

There are many other factors which could impact the operations and financials of the company such as customers’ ability to pay for the company’s EV charging equipment and related service, high completion. Furthermore, the company is shifting its focus on the crypto mining business, hence some new risks are also getting associated to the company. On top of all an investment in this stock is recommended to only those investors whose risk appetite is higher.

Stock recommendation

The group has posted an elevated loss of CAD 2.3 million in its last reported financial number, whereas the company is still not able to recognize any sort of revenue, even the management has not shared any guidance on the revenue recognition. Additionally, the group is shifting its focus more on blockchain technology applications and recently, ACDC together with its subsidiary IONiX Pro and in collaboration with the ROBe2 Protocol, have introduced the world’s first carbon-negative crypto miner, the Smart Miner. Any delay or failure in the success of Smart Miner would cause hefty loss to the company. Hence, considering the aforesaid rationales, recent market volatility and risks involved in the company we recommend a “Sell” rating to the stock at the price of CAD 0.15 as on December 3, 2021.

One-Year Technical Price Chart (as on December 3, 2021). Source: REFINITIV, Analysis by Kalkine Group

*The reference data in this report has been partly sourced from REFINITIV.

Disclaimer

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