the good the bad ad the ugly, page-9

Gamesmanship seems the right word. If I am Kronos, here is what I am thinking:

- We want APG and its technologies.
- APG's value as a company will be significantly higher in 6 months with a producing plant than it is now...we have to act before that happens
- Given they are 3/4 of the way through construction, their coffers must be starting to be strained. With a lawsuit perhaps we can disrupt construction, and or drain them of remaining funds.
- In this case they will have to come back to us on our terms (little chance for them to raise additional funds from third parties with our lawsuit pending) or we force them into bankruptcy and buy them as part of insolvency proceedings.

From our side:
- The key is that we have sufficient funds to complete the construction/commissioning and move into production. We have to keep this moving.
- Hopefully it will take 3-6 months (or longer) before this comes to court, and we will already be in production.
- Hopefully our legal agreements with Kronos has better be tight around what they were to get and when and this gets thrown out.

I must say, I never understood how Kronos could give us $12.5M and then apparently walk away like they did. Now it all makes sense.