Folks let me put some of Roni’s comments in perspective, like any good lie or misinformation campaign there is a kernel of truth as a foundation and the key is separating the two.
1. Issued patents for their proprietary processes
They are losing their patents to Annon who has them as collateral to their unpaid loan.
• Roni that is categorically untrue, for everyone’s clarity please note:
o Patents were used as collateral – True
o BION owes Annon the entire principle value borrowed – True
o BION owes a certain degree of interest, currently the companies disagree what that value is and a court will determine interest owed - True
o I will grant you if BION closes shop and does not pay then patents could change ownership, however, there is currently ZERO risk of Annon taking patents. Until the court rules nothing is at risk – True
2. FL and LA have provided tax free bond financing for at least 5 plants.
No patents - no bonds
• Factually correct, this needs to be resolved before Stifel Nicolaus will underwrite. Additionally there is close to $2 Billion in bonds with potential to be increased now that plant cost has increased due to improved technology modifications, this will translate to (10) plants between the two states.
3. Everything they can produce for 20 plus years is Sold
Urea fertilizer is a commodity with a price (like coffee, etc). Once produced can be sold to anyone for 50 years at the commodity price at that time.
• Commodities are priced at fair market value is true, commodities are by definition high volume with low profit margin. Where BION will differentiate itself is:
o Relative to North America competitors – 40% of total U.S. supply
? -Distinctly lower capital cost being applied to the product, $250M plant verses $1.5B. That means traditional plant overhead burden will be 6X higher than BION (estimate 20% of cost to produce)
? -With natural gas in the US in the $3 range there will be no competitive advantage as it relates to raw material cost (estimate 60% of cost)
? -In all BION should have a small competitive advantage over domestic supply
o Relative to overseas competitors – 60% of total U.S. supply
? -Distinctly lower capital cost being applied to the product, $250M plant verses $1B (plants are cheaper in China, Russia, India for example). That means traditional plant overhead burden will be 4X higher than BION (estimate 20% of cost to produce)
? -With natural gas in the $5 range in the Eastern hemisphere there will be a small competitive advantage as it relates to raw material cost (estimate 60% of cost)
? -Transportation should be something on the order of 10% additional cost from the Eastern hemisphere providing additional competitive advantage
? -In all BION should have a stronger competitive advantage over imported supply
4. Experienced competent CEO and board
Important board that are subject to your experienced alleged criminal who is doing nothing for the shareholders but diluting them illegally and blaming everyone else but himself to what's been happening to the company while he was its CEO. All Those years!
• Clearly you have an issue with Carlos, to be frank your constant whining about him has gotten old. What an impartial individual would recognize is the board is distinctly stronger with industry experts as it relates to security and corporate startup funding, as well as a real investor relations firm (not some guy working by himself pimping the company).
Roni as I have said in previous posts I have no doubt you believe you are owed money, however, the past two quarterly statements clearly define the relationship with you (Hidenet) is over and all outstanding issues from BION’s perspective are closed. Carlos will not take your call and unfortunately for us your only remaining outlet is to post your subjective opinions on an internet chat board, which in itself demonstrates your cause is doomed. Think about it, what professional with any degree of commercial relevance posts on internet chat room complaining about a company? That would be none.
For everyone else I have been contributing to this board for nearly three years and own nearly 3M shares, I am still long however am no longer procuring additional shares. I have dropped my confidence interval from 80% to maybe 60% and in fact have been selling some of my higher priced shares to offsets gains on other investments for the last two years. What keeps me long and not wholesale exit is:
• Termination of BK
• Security/Compliance expert joining the board
• Startup funding expert joining the board
• A real IR firm
• Robust legal challenge regarding Annon
With the degree of problems BION has experienced in the last 6-7 months I wouldn’t have been surprised if they closed shop, the degree of tenacity in their attempt to recover is the only thing that keeps me long. Bottom line BION needs to resolve Annon case, and let’s be clear win or lose is nothing more than a lower or higher cost to repay with the variance measured in hundreds of thousands of dollars (not a deal breaker, done FY15 perhaps?). Audited financials and up listing (in process, done in FY15 almost certainly). The HUGE challenge is the need for something on the order of $3M-$5M funding to complete the EPC report. Once the EPC report is completed then SN will issue the bonds and there is a single buyer interested in procuring this opportunity, this means leadtime when accounting for all the administrative activities we are talking about something on the order of a couple of months tops.
In summary my best guess is BION expects to button up Annon and up list with the expectation of A) Buyer sentiment improves and SP increases enough to generate the funds needed, or B) BION has an investor lined up who will provide funding once these activities are behind us. If I am wrong then we continue to flounder looking for funding until we either get it or we bankrupt. Hope this helps folks, take it for what it’s worth from a random guy posting on an internet chat room...
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