Maybe we are on a PR per week, that would be good!
Re the notes:
- Good to see the financing structure continue to evolve. However, a bit surprised at 9 notes of $20M each, when there are to be four annual disbursements of $45M each. Why not 8 of $22.5M each?
- Despite the PR headline, Sure Fund has NOT yet issued these notes, but per the first sentence of the PR has 'agreed to issue.' Not sure why there is a discrepancy.
- The PR says they 'will be available to any investor,' so it sounds like none have been bought as yet. Announcement of the actual sale of the first note will undoubtedly cause the pps to jump.
- Likelihood of anyone buying will be a function of the nature of the 'principal protection' and the size/nature of the 'strong structured return'; anyone know their details?
With respect to the flare gas technology:
- EEGC has only a 'first option' on this technology for certain regions; even that was news, as I don't recall seeing it in any SEC filings. Just a PR last August that Mr. Bendall was going to give the rights (sounds like that didn't happen, just first option). Anybody know the terms of the option, or where its existence was previously published?
- There is a fundamental conflict of interest between Mr. Bendall -- who apparently owns this technology -- and EEGC, which would like to commercialize it. If EEGC is going to spend $300M commercializing, they should have a level of commercial participation worldwide, not just in North and South America. Indeed, I would suggest they should own it with royalty payments to Mr. Bendall, assuming there is a patent.
- If there is a desire on behalf of Mr. Bendall and management to get the pps to move well above .07 in advance of the July 30 close of the RO, publication of relevant flare gas technology patent numbers and/or comments by industry experts as to why the technology is unique/exciting could create the appropriate excitement. For now, $300M to commercialize is a huge number, indicating significant complexity with a multiple year activity by a company which has not shown that level of technical sophistication to date.
- For me, better that Mr. Bendall sell the flare gas technology to someone else and use the funds to complete the RO and buy the Sure Fund notes so drilling can begin... The key word here is FOCUS.
Interesting that yesterday's volume was relatively high, in advance of today's news. Overall, pps only went up 15%, indicating that investors continue to await 'meat on the bones,' IMO sale of the first Sure Fund note and/or successful cash completion of the RO.
AI
