The Detroit-based Exergetic Energy, Inc. (PINK:XNGR) claims to be a “holistic energy company”. Yesterday, SmallCapVoice.com featured XNGR as a new client.
Despite the exposure, only a thousand XNGR shares were traded yesterday. As insignificant as that number may seem it is still better than the performance for the last few weeks.
The company has stated some pretty ambitious goals. In the 10-Q for the first quarter, XNGR says its “…striving to become the largest US manufacturer and supply of power inverters to the global marketplace.”[BANNER]
As impressive as that sounds, so far the company hasn’t managed to do too much. Back in February, XNGR secured a draw-down equity financing agreement with Auctus Private Equity Fund. The company has agreed to issue and sell to Auctus up to $10 million worth of XNGR common stock.
Securing equity financing is not always the best decision for existing shareholders, but in this case it was one that had to be done. The company can’t sustain itself off of existing operations. For the first quarter XNGR recorded $334 in net revenues and $526 thousand in net loss.
It is too early to say for certain where XNGR will go. For now what is clear is that the company has some ambitious plan and will need some serious financing.
