is my aunty really my uncle?, page-2

dan,

I have to disagree with you on this one. LOL.

I believe the $120 million to be paid in cash to Linc Energy was for it's use of their IP in China.

For GCL to be buying on market does not entitle GCL to the IP and LNC receives zero cash.

Effectively if this deal goes through GCL has received three things.

1. 26.67 million shares of LNC stock @$4.50 = $120 million
2. A share of 67% of any JV operations in China
3. An interest in LNC's IP in China

LNC on the other hand will receive 5.

1. $120 million in cash
2. Exposure to the Chinese market via GCL
3. A further $15 million over 3 years (working capital)
4. A share of 33% of any JV operations in China
5. No CAPEX to the JV

The announcement was really a sales pitch in my opinion.

Is it a good deal if it goes through? I guess it really depends on whether the deal progresses. LNC's previous history with foreign companies (namely China, India, Vietnam) suggests that it may well not happen.

So yes, in my opinion the jury is still out.

Nevertheless $120 million in cash is $120 million in cash and if LNC can get this money into the company, its a good short term deal if anything.

Just my thoughts. maybe I've not understood the announcement?