Replies to post #913 on Cool Technologies Inc (WARM)

[kwitz22]

They set the purchase agreement for 234 units plain and simple. They wouldn't have gone the purchase commitment route unless they wanted 234 working MG units by a certain date. They want these things just as bad as we want to sell them. Jatropha wants the product to perform as they expect/imagine, that's what we need to execute next. The purchase commitment is just a formal way to guarantee a per unit cost, along with locking down the company's production capacity. I'm sure they are doing it for the latter. If some company beat Jatropha to the punch on a purchase commitment, Cool Tech wouldn't have the capacity to pump out all the units Jatropha desires by ~April 2019

[kayak_wench]

I am sure they are not legally obligated to buy all 234, but as noted they want the product. Airlines are not legally obligated to buy all the airplanes they arrange from Boeing either. Who wants to work with a company that doesn't let you change your mind if your situation changes. I am sure they will only be legally bound to buy the trucks for which they put money down (25 at a time). But new orders drive price. What matters is a customer has said they want this and the order is large enough for CoolTech to have a good revenue stream while they build new orders. So if they only end up buying 100 its still good for us. If they get the demo truck then come back and say no thanks, even after having 30 days of CoolTech addressing issues they found, then we are in trouble.

We have constantly been hearing from their insiders that this was marketable. Many of those insiders had real experience with understanding what is marketable in the work truck market. This is proof they weren't entirely off base.