Israeli energy company Brenmiller Energy Ltd. (TASE: BNRG) has been hampered by its financial troubles for quite some time. Its most recent financial report shows that the decline is continuing, with difficulties in financing the completion of its main project - the Rotem 1 power plant in southern Israel.
Brenmiller, named after founder, controlling shareholder, chairman, and CEO Avi Brenmiller, develops, designs, constructs, and operates energy production facilities, and sells energy storage equipment and solutions based on proprietary development and technology.
In addition to Brenmiller's losses and the cash flow that it reports, the company's auditors draw investors' attention to the management's assessment that "the balance of cash possessed by the company is not enough to complete the Rotem 1 project or finance the company's regular activity for 12 months from the date of the survey report."
Brenmiller's auditors add that the company "depends on obtaining additional financing from external parties, while obtaining it is by no means certain." In recent months, Brenmiller has more than once reported talks for bringing an investor into the company, but these have been were unsuccessful. In view of the company's situation, its financial statements continue to bear a going concern warning.
The company is not generating revenue at the present time, and its losses continue to mount, reaching NIS 20 million at the end of the first half of 2019, 175% more than its NIS 7.5 million loss in the corresponding period last year. Its loss for the full year 2018 was NIS 26 million.
Brenmiller has another problem: Delay in the timetable for the Rotem 1 project and higher cost estimates for it. The company suffered from a NIS 10 million drop in this project's value, which is currently valued at NIS 30 million. According to the company, the value of the finished project will be NIS 56 million.
Brenmiller completed its IPO on the Tel Aviv Stock Exchange in August 2017, and two years later is regarded as the worst IPO in 2017-2018, with an 80% plunge in value since the IPO.
On the positive side, together with its report, Brenmiller announced that it had signed a binding sale agreement with Brazilian company Fortlev Energia Solar, which distributes equipment and materials to the water and energy sector in Brazil, for the sale of a steam electricity production system based on Brenmiller's technology, for $380,000.
Published by Globes, Israel business news - en.globes.co.il - on September 2, 2019
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