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standintall

07/29/11 9:52 AM

#16407 RE: JHop #16398

Sure, It means the Sunlogics is going to have a lot of business and that they are being funded to produce these projects for GM. It has nothing to do with SLMU though. There are two possible outcomes for those projects.

1. If Sunlogics keeps getting funding, they won't need to sell the finished projects to SLMU to regain capital to continue building. That would mean because Sunlogics if Sunlogics can continue to attract capital, they won't need to sell their revenue producing assets to SLMU.
2. Sunlogics decides to sell the projects to SLMU at a fair market price. Fair market price = full market price. So, IF SLMU can raise some capital (it has $0), then it can pay the same price for the projects as Sunlogics would get if it sold it to any non-related investor or group. IF it can get the cash. To raise cash, they will necessarily dilute the heck out of the existing shareholders and the return on each project will be small, by design. Invest $1 million in a completed project, get maybe $100,000 in annual income back on it. How's that ever gonna make anyone rich? Might as well invest in a bond fund. Here, management will eat up most of the revenues because there are no protections like you find in mutual funds. No matter how you slice it, this is a bad deal all around.