Energy X a good investment?

[jilliang]

Came across this and was wondering if its worth a $504 investment?
https://invest.energyx.com/?tnames=...01-01_10-11b&utm_source=dmrenergyxlandingpage

all I know is the website details and that GM took a $50Mil investment in this company. Ideally this would be something for mw to buy and not touch for 5-10 years down the line. Thank you all in advance

 

[goodbookguy]

@jilliang I got in on an earlier round of investing with them a while ago. I did my research and was legitimately excited. But I'm honestly pretty skeeved out by a company that runs ads looking for investors on Instagram. I'd love to know more about what their plan is, but I'm having a hard time finding info online.

 

[sunflower7]

@goodbookguy I can find some info but none of it good. No matter how high the demand for lithium I won't invest in a company that produces nothing and has to market for private investors "hoping" they go public or lose every penny. I found out about them from a YouTube ad. That right there is a huge red flag.

 

[goodbookguy]

@sunflower7 If it's a con, it worked on an enormous car company, albeit one that's not known for making sensible decisions.

I guess we'll find out. I won't be ruined if it all goes nowhere.

 

[ianh]

@jilliang Guys, c'mon you can't be serious about this company. Why do you think they're targeting retail investors with ads? And a website that looks like it could be selling timeshares? Its because they can't raise institutional money. And what happens when they run out of cash? The little guy is left holding the bag.

 

[eduman]

@ianh Yeah, you can look through their burn in their SEC filings. I'm not a genius but when I see numbers and acronyms like R&D $364,000 then notice the top 3 execs take a 300k salary ,lol

 

[algg]

@ianh Is this not “institutional money”? https://news.gm.com/newsroom.detail.html/Pages/news/us/en/2023/apr/0411-energyx.html

 

[sunflower7]

@algg 50 million to GM is like a penny to you or me. And this company will burn through 50 million in no time and still produce nothing. I just can't risk investing in a company hoping it goes public or I lose everything and I don't even know what they produce and why they are still just losing money, produce nothing, and resort to internet marketing like Instagram and YouTube ads. Almost e begging. It's way sketch.

 

[sunflower7]

To add.... the company was founded 6 years ago and still has nothing to show but some videos and loss. And the videos are really short. I would like to see in depth what they have produced so far and where the bulk of the money has been going besides the CEO's pockets. If they have spent millions on research they should have long videos. The longest one is their YouTube ad looking for investors.

 

[beardedbloke]

@sunflower7 Check these longer videos:

Each over 50min long. The 2nd link gives thorough explanation about the processing of lithium.

 

[sunflower7]

Also, realize GM's revenue is $156.7 billion. They need write offs. And even so it is not so clear what if any of the 50 million went to or did. It's really not very clear. Even in the article to linked that has a "Cautionary Note" at the end.

 

[girlplea]

@sunflower7 I noticed that their language didn't exactly say that they have completed a process to sell

 

[jwilson757]

@jilliang I am also considering investing.. seems like a fairly small investment cost on a (what could be) large company. They are just so private still.. and the CEO has a bachelor's degree in business... which is fine but it seems insufficient for the company as a whole.
My naked eye is wary but interested.

 

[sunflower7]

@jwilson757 I was just trying to find the address of their supposed headquarters in Puerto Rico to satellite image them. I think it is a CGI fake pic on the website to make it appear they actually have an asset. I could only find an address for them in Florida. It's just a small unit in a small office building in Fort Lauderdale. That's not the only reason I am skeptical but it is some icing on the cake.

 

[whatwasoldisnewagain]

@sunflower7 They have a medium-sized building in Austin, Texas and are working on an even larger facility in the near future. I've invested with them in their seed round and their Reg A round. I believe that they will be big, but that's just me. They are in both the extraction of the lithium and the making of lithium batteries. There have been recent developments in Chile as well (though they haven't been made public yet). Yes, there's the $50 mil investment by GM, but there's also been a $450 mil commitment made by Global Emerging Markets (GEM) should EnergyX ever go public. I just don't think someone makes a commitment like that without realizing the real promise that this company has. Viva la EnergyX!

 

[sunflower7]

Also, aside from not giving an address other then "Puerto Rico" and a zip code, the phone number is a Fort Lauderdale area code. Right under where it says Puerto Rico. So something is amiss... or sus. If you brag about a location of a headquarters and show a huge modern building but not a proper address or phone number it is evidence of deception.

 

[sunflower7]

UPDATE: I was carefully reading over the SUPPLEMENT TO THE OFFERING CIRCULAR https://www.sec.gov/Archives/edgar/data/1830166/000149315223045075/form253g2.htm#k-010 and found out the Puerto Rico address is a P.O. box. So there is no huge modern facility "headquarters" there. My take is they use the address because it is more difficult for investors to sue them there, which they actually mention in one of the sections. It all stinks.

 

[bonbon21]

@sunflower7 They're just a broker and using the investment money to buy into lithium stocks??

 

[sunflower7]

@jwilson757 BTW.. currently it is a $1,000 min at 9 bucks a share. Not a huge amount but it is still an amount most can't afford to lose. And unless they go public, you can not recoup a penny. I doubt they will go pubic bleeding money and producing nothing. Then consider how competitive the industry is and how fast things can change.

 

[jwilson757]

@sunflower7 4 months later, and I'm glad I didn't buy in. I'm just saying.