Had a chance to listen to the CC.
Here is what I got out of the CC.
In regards to ETD:
1. The company has attempted without success to solve their capital structure in the past. At this time they don't see given their capital structure and the changing ETD space, that the ETD business as being able to solve that capital structure on a stand alone basis. As such they are in negotiations with up to 10 companies regarding a possible sale.
2. In regards to the sale, they see a very strong 2017 fiscal year and as stated before, these contracts, depending on their outcome can and may affect those negotiations. McGann did state that he is more confident now of that strong 2017 outlook compared to 3 months ago.
3. Of note, DMRJ has 5% vote, the common shareholders have the rest of the vote to decide what to do with the procedes. The company needs 67% of any vote to move forward with a plan of action.
4. ALL ETD business will be sold, including IP.
5. McGann still believes that ETD business will have double digit growth trajectory.
In regards to Zapata:
1. It is a successful profitable business with recognition for its water propulsion systems in recreation. That business venture will continue to progress.
2. IMSC would provide access to DOD/military. There are already verticals in the military, ie medivac, transport. It is not ETD related, but Licouski sees the same pathway for this technology as for drones and robotics. Military is usually the first entity to adopt the technology and it is a billion dollar market.
3. He states that the technology has a high TRL (as mentioned by another poster)
At the end of the day, the common shareholders will vote for where the company's future goes. I think it was an excellent CC and really appreciated it. I still think that the final sale price of the ETD business may surprise some for the better and then we vote. All this chatter should stop by the end of september as the LOI with Zapata is valid up to 10/15/16.
GLTA,
KB
