LEXG has no lithium assets nor does it own any lithium related technology. All it has is a 5 year right to sell the Glottech units which started in 10/1/2012 and expires in less than a year and a half on 10/1/2017 but renews automatically for 5 years if they sell 25 units by 10/1/17 and renews for 5 years for every 5 year period they sell at least 25 units. So they what you are buying on the upside if this works out, for an enterprise value of $3MM (market cap + debt owed less cash on balance sheet) is the right to distribute Glottech machines (Glottech would still own all interest in the technology) and it is not even disclosed whether that right would be exclusive to LEXG. Not sure how high reward would be.
From the last 10-Q (there is nothing more current related to Glottech):
On October 1, 2012, the Company entered into a sales agency agreement with GD International. The agreement shall replace all agreements entered previously. Pursuant to the agreement, the Company is appointed as GD International’s sales agent for the technology within the territory. As a consideration, 10,000 common shares of the Company shall be issued to GD International (issued: see d) above). GD International retains all right, title and interest in the technology. The term of this agreement will be an initial period of five years. The term shall be automatically renewable thereafter for successive five year periods provided that the Company has sold not less than 25 or more technology units during each applicable five year period.
From the same 10-Q related to the Mineral Permit (there is nothing more current related to mineral assets and mineral related assets and mining expenses have been 0 for years in the 10-Qs and 10-Ks):
The January 1, 2014 payment was not paid by the Company, and subsequent to the schedule payment date, the agreement was terminated.
AI
