here is my take on it.
A) Thank you John for putting the detail onto it. Most of that could have been in the initial PR I would have thought.
b) So a straight JV for a new company to do the same sort of business on SGCP's concessions but with larger more modern equipment and of course the expertise we have built up.
c) not the black sands processing JV we are waiting for, unless there is more detail to be told.
d) I am not worried about his dual role, it may help things. As far as I have learned form a few boards, John put a significant amount of his own money into this new business. Still not sure how it plays in to Stratton Holdings though (where we first heard about it), it seems to be a purely private company.
e) profit sharing deal sounds great - BUT I hope their accounts keeping is a bit more detailed than SGCP. Looking at our whole operation for Q3 last year we sold $113,000 with labor of $31,000 so grossest of gross margins $82,000 take 33% and we get less than $30k. ($120k for the year) So I know the $500k maximium isnt going to be hit.
The implication is that on one concession they will generate an incredible amount of revenue compared to SGCP's whole year last year. If that happens you have to ask why we aren't working that concession ourselves or investing in the super-dupper equipment.
Time will tell. Lets hope Doug comes back with a few more deals so we can see perhaps $500k in total profit coming from the deals they put in place. that is a more realistic target for this year.
What really matters is that we get to cash flow neutral ASAP - no more dilution this month please.
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