QS Energy Inc (QSEP)

[moorea9]

The notice of 90 days lease termination given by TC on july 15 2014 had only one purpose : to revert back to the timeline that they had in mind when they signed the contract in august 2013.

This contract stated that the delivery of the AOT was estimated no later than march 2014, which means "commencement date" on april 15, and end of the 6 month lease on October 15.

But because of delays, the installation was accepted only end of june (CC of august 11), which becomes then the actual "commencement date", and thus the end of the lease 6 month later is end of December 2014.

By using the 90 days termination option on july 15, TC just washed out those delays and reverted back to the date of October 15, as the date of the test ending.

As a side effect, by doing so, TC made a pledge of confidence in the AOT.