The percentage makes no sense as a good faith committal. The fact that they can't cash it until they can provide lead times shows very blatantly that George either has no idea when they can start production and what his production capabilities will be at that point or that his supply chain isn't anywhere near to being set up. I generic response would be "they didnt just give him 500M for nothing", but in all reality they haven't given him a penny until he can give them confirmed dates. You can't claim in a PR that it's a 90MM deal if they are only providing an LOC for 50% of the order...that's called a 45MM deal and as a manufacturer, George is a god awful business man if he has factually sat down and signed an agreement worth 90MM while only receiving 1/2 of 1% of the agreement as up front capital. For non-commodities, you just about can't get a 500M order from a manufacturer these days without putting up at-least 30% before shipment, and that takes negotiating from the procurement side to get it to that point.
It's just super odd to me. I don't care if someone signs a $50 Billion agreement for future sales, it all means jack until they are mass producing units because at the current rate of production, it will take infinity to generate these 5000 units.
Again, im not saying its BS, im just saying it looks super odd. As always with my skepticism, i hope im wrong.
