Email from PR director Nick Plumridge regarding the last news release. Very interesting.
My questions are first. His comments follow.
Mr. Plumbridge,
Thank you for the continuing updates. It sounds like we are making good progress.
I am a little confused about the wording of the last release, and have a couple questions.
Is the funding, and project completion date of mid 2012, for the continuing R & D for optimization of the technology, or is the completion date for the construction of a plant?
Where is this plant to be constructed if it is a plant?
Or if R & D, is the next step after that to build a processing plant? And is the funding mention contain construction funds.
Does CMSE have any relationship to this, or is CalciTech running this end?
I know this is a different side of CalciTech than the SCC production plants. Do you have any projected revenues from such a plant? Royalties back to CalciTech.
Thank you for your time,
XXXXXXXXXXXXXXXXXX
Dear Mr XXXXXXXXXXXXX
Following your communication last night, I would like to respond to the questions which you raised.
This project is purely R&D at this time, with a view to establishing the efficiency and thus commerciality of this new application. It is therefore not the completion of a plant construction.
On completion of the testing and trials, we hope that this will lead to contracts for satellite plants to be installed into existing paper recycling plants. These will be significantly smaller than the SCC commercial plants which we also hope to build. However, and as you may imagine, there would be many more opportunities throughout Europe in particular, since paper recycling is growing at around 40% per annum in the European territory.
The ownership of this technology resides with CSM. CSME are managing all aspects of the testing as well as any subsequent negotiations for satellite plants, and CSM and CSME are currently wholly owned by CalciTech Ltd.
Projected revenues will be produced at a later date, once the testing has been completed. At this point all parties concerned would no doubt enter commercial discussions which would culminate in being able to project future revenues for CSME. It is anticipated that CalciTech would receive royalties of about 5% of gross revenues.
I very much hopes this clarifies the position, and please do not hesitate to contact me if I can be of any further assistance.
Yours sincerely
Nick Plumbridge
AI
