Pizza, its likely to be a licenseing / royalty model applied here.
Most ASX hopefuls would have gone down the path of trying to build a facility and control the process end-to-end. This would have been an capital intensive exercise.
The current plan sees Nanollose sitting in the middle of the supply chain.
My understanding is that they will license their technology (which converts plant-free cellulose into fibres) to global clothing manufactures, and then link the clothing manufactures with the groups who supply the cellulose.
It's a dream model. Nanollose lets others do the heavily lifting. All the while taking a cut and continuing to develop other interesting applications for their tech.
The size and scope of the company's Nanollose will hopefully work with is mind blowing.
Some of the smaller clothing groups have market caps higher than companies within the ASX50.
There are very few speculative small-caps who have the opportunity to rub shoulders with global players this big.
It's just a case of being patient.
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