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Unfortunately, the financial statements do not yet support your statement. Our press releases tend not to come to fruition.
Third party verification would be most welcome.
It all comes down to the capital to spend on buying the systems. If a client raises the funds and buys the system, we get a small one time profit unless we extract some trailing fee. If we raise the capital then we earn revenue but not too much free after-tax cash flows until the debt is repaid.
What has Roselle Capital for us in over a year?
I am okay with that price level based on people buying on the sizzle but where ia the beef?
The hype outweighs the verified facts.
Revenues can only happen when capital is made available to the project owner whether it be us or a client. If it our company, we need to consider the cost of operation and whatever debt service costs and taxes are incurred. If it is a client then we only make a one time profit from the sale or advisory services.
Given the history of official company press releases on project developments with nearly three quarters going nowhere and the retention of parties to find funds for projects again which have not materialized, I only ask objective questions.
As for GGII, I an not a shareholder, director or a supplier to that firm. I only bring up GGII is that our company and GGII had promoted a strong relationship where the latter would be the equipment supplier. Check out our press releases from 18 or so months ago. Also, look at the GGII website which mirrors the press release. The Beston equipment used in India will need replacement in about 10 years. Who is going to fund that one seeing that we issued a lot of stock to buy the system?
As for my 900k plus shares of CLNV, I need a little more of a run up before I will contemplate a partial sale.
Do you know who is financing the plant or do they still need to find a bank or investor?
Has anyone disclosed who is funding each project? If so, can if be independently verified?
Revenue does not translate into profit or after tax cashflow. If the funding is coming in the form of third party debt then you need to factor in the repayment of the capital. The schedule does not say how much of the project we own after taxes and after debt service cost.
This needs to be balanced with the press releases for Ecuador, the Congo, the Cameroons, the UAE and Cape Cod. The same goes for statements of funding being arranged by Roselle and a California based firm. These are all CLNV released official statements. The financials only show the investment in a Beston made demonstration unit for India. Remember that no capital means no revenue which means no profit which means no value.
Even astute and well managed pension funds, PE funds and investors got taken in by FTX. A good scam will fool the best intentioned and the most intelligent investors.
What do the after tax cash flows look like after any loan payments or return of capital?
Who was the original equipment supplier and who did the rebuild?
Who said I was working on CLNV projects as a supplier? I am a CLNV shareholder and an industry insider working on a number of projects. There are many suppliers, projects and funders in this space
I haven't heard the GGII name in a while on this board. I read we have gone with Beston in India. Who did we go with in Morocco?
I said I was an industry insider. I am not an insider in CLNV although I am a smaller shareholder in the company. I know the ins and and outs of several system designs. I also have interests in several projects which are being assembled now.
There is a difference between a board meeting and a meeting of shareholders. It is extraordinarily rare for shareholders to be invited to attend a board meeting.
Only a small investment in CLNV. I have positions in other public and private entities.
I do have a long position in CLNV and have so for some time.
As for being an industry insider, I am sorry that you feel the way you do. I partially own a number of facilities under construction in the US and an advisor to a handful of Asian plants. Some Indian prospects are being developed through an offshore JV.
You cannot ignore what the company officially press releases and what does not materialize.
By the way, I am an industry insider.
Do people recall the July 2021 press release announcing the retention of Roselle to fund plants?
Do people recall the December 2021 story about HSA Investments funding our plants?
Any serious investor will want to know if the feedstock is secure. This does not mean that the market size is large enough but rather means that the supply is under contract. Without feedstock, it does not matter about the quality or scale of the plant or the terms of an offtake agreement.
The next aspect that an investor will look at is the ability to sell the output. Just saying that the market is there does not cut it with family offices, banks, PE or VC firms nor will it cut it with green funds. There needs to be evidence of a sales agreement. Ideally a floor price and minimum volumes would suffice.
As for the technology, it needs to be proven. Pyrolysis is proven but to take the output to quality diesel or hydrogen is very new. A credible investor should demand an insurance wrap and a third party review of the technology.
Assuming all of these attributes pass muster there is a question of how much cash or other valuable consideration like land to the table. If none or nominal, the fund raising process takes much longer. Think of going into a bank for a loan to buy your first house with no money down. It is a hard stretch. It will even take longer is the dollar amounts are very low or too high. With higher prime rates now, it becomes a challenge for an issuer without a financial history. Do not be surprised if you are looking at a 10 percent coupon rate and owning at least a third of the plant at a minimum.
How much will go to small companies who have no history to deliver and some governance issues versus Big Oil who shell out millions in lobbyists and political donations?
It is a nice update albeit a little late.
While we know generally where the feedstock will come from geographically there is no specific contracted provider.
Also, the Walton Foundation nor ASU is providing the capital for the project. The foundation appears to be providing technical access. So, where is the money coming from?
Very true, indeed.
How many press releases announcing signed MOU's has our company made with nothing coming out of it. Do you recall the various funding firms, the best in class pyrolysis equipment provider, the projects in Ecuador, Congo, Cameroons and Cape Cod?
Never said that.
The previous post implied being SEC registered mean that a company is legit and management is approved by the regulators. Enron, Adelphia, Lehman Bros and the like were all SEC registrants, filed audited statements and every public statement on deals, assets and revenues were encouraging. Management integrity and the ability to deliver are never attested to until something goes wrong.
Enron was SEC registered and audited!
It will be interesting if we see revenues with corresponding expenses and interest costs from CLNV division or a mere equity pick up from an unconsolidated investment. In either case, there will be the proper presentation of the associated debt.
There are degrees of corrupt ness. SRI Lanka is well up there on the scales.
According to the last quarterly report, the two plants have not generated direct revenues or indirect equity pickup. Maybe, the next quarter's results will provide some guidance.
All the financial statements have shown is an investment into the Beston made pyrolysis equipment.
Sri Lanka???
A country that has had civil unrest due to inflationary fuel and food prices. A country that has a corrupt government.
Alas, a different project developer.
Based on our previous press releases, aren't we already in the Congo and the Cameroons?
I heard a couple projects are going into Egypt next year.
Our recent quarter did not show any material income and only a small investment in equipment placed in India. So, retrospective financials are not meaningful to an ESG fund. A funder can only look at bankable prospective projects. Unfortunately, our past track record on successful versus unsuccessful press releases regarding LOI's does not instill a lot of confidence. We might be able to get an ESG fund to look at each project based on land, building, equipment, management, firm supply and firm offtake agreements. Hoe much will we need to give up to get the money when we are not contributing new cash and other key attributes. Look at 10 pc closing costs, 8 pc interest and 40 pc of the stock.
The last time that I looked, the University or the sustainability program did not issue a press release.
When our company press released the Ecuador, Cameroons and Congo LOI's, none of the local language press picked up their respective stories. Odd.
ESG of any caliber would want to be sure that the input supply and offtake agreements are rock solid. When it comes to the equipment and installation, they would typically demand a proven EPC contractor and robust equipment. The Beston system used in India will not suffice the needs for a ESG funder. When it comes to management, this is where there is some weakness. Where is the proven record of an operator? A board member who worked on the periphery would generally not count as experience. Assuming for a moment that all the boxes can be checked off, how much equity will need to be given up when our company is not really bringing new money to the table?
Look at the success ratio.
Two wins - Morocco and India. Seven losses - 3 in Ecuador, Cameroons, Congo, Sri Lanka and Cape Cod.
No revenues reported in the last quarter for any projects and only a modest investment in India. It will be interesting to see what revenues, equity pick up or investment appears for the next quarter.
The unfortunate reality with our company is that we have seen a number of press releases announcing MOU'S that did not materialize. Do you remember the three projects in Ecuador. What about those in the Cameroons and the Congo? What happened to Cape Cod and Sri Lanka? All the financial statements have shown thus far is an investment in a demonstration unit in India and no income derived thereof. We should not get ahead of ourselves.
The financial statements have not recorded any revenue using the accrual method or and equity pick up from related projects or investments. We have over 300 million in project announcements but no revenue. Until we or our JV partners or clients have found capital to build a project there is and will not be any revenue.
Has Arizona State or the Walton Sustainable school at ASU issued a press release regarding our company's efforts?
When I looked on the ASU website 36 hours ago, they had not posted anything.
There is no issue with paying debts with shares. So, no Reg A is needed.
As for the Asu MOU or agreement, there is a lengthy history of announcements, MOU's, photo ops and the like. To date, we have not seen any revenue accrue to our company from Morroco. Is there any enduring revenue from India? Based on past experience, what makes this announcement different. ASU has not said anything that I can find.