Biomass Secure Power Inc. (BMSPF)

[PhillipD]

Offtake agreements are used to secure financing to build plants. It's a mechanism to satisfy lenders and underwriters that the money provided is secured by something other than a hope that a product will sell. No one would lend or issue bonds without some surety that there's a mechanism to pay it back. It's a chicken and egg scenario where a lender won't lend, the builder can't build, and the product end user can't get their product if some agreement want in place prior to construction to satisfy all parties that they will get what they need before starting construction.

Phillip