I am neutral to this news. Obviously, there are some questions need to be answered. How does EFL pay Tata this transaction if there is no cash and no share dilution involved? It is possible is through future revenue and/or right to use the IP. Why does Tata give up MBG? It looks like Tata is half hearted in EV to me, much the same as Chyrsler, citing high cost and lack of infrastructure. US won't do anything until the presidential election so the EV side is kind on hold for now. For the short to medium term, smart grid energy storage is more promising. So it may not be a bad situation that EFL take over MBG and uses that expertise and combined with the geographical location as a hub for its smart grid energy storage business in Europe.

As for the share price, it is now trading at a market cap of about $30MIL CAD. It will probably to trade sideway. The cash on hand is a bit over $3 MIL CAD so obviously cash position is not ideal. However, it should give EFL sufficient time in the next year to drum up some smart grid energy storage contracts. As a matter of fact, without some meaningful contracts, it will continue to trade sideway IMO.