Yeah, you're right. Copping to the quality production issue is a big Twinkie.
However, it's not Kim's MO to cop to problems until they're fixed. Or in this case, until he knows how to fix it but he's not doing so now for prudential reasons. e.g. Current facility needs $$$ worth of investment to be able to produce the quantity/quality they need but it's fiscally irresponsible to do so at the current location. So they know how to fix it but they need a long term place to do so to justify the expense.
Problem is that now, even if the VN facility becomes a reality within the next quarter, we will be waiting for news that the quality is, in fact, at desired levels consistently. Good part about that is that creates an excellent trading opportunity if it spikes after announcement of VN deal.