GCL want to profit inside China utilizing this technology. As stated, they get 66%, LINC get 33%. Whilst not ideal for LINC, it does do a few things....
1) Proves the viability of Commercially using the technology.
2) Provides a commercial cost/profit base analysis for other interested parties in the technology.
3) Get LINC up and running.
4) Once approved GCL may well purchase more on market, pushing up SP.
5) Once up and running it may make LNC a higher risk for shorting = less volatility in SP.
In short GCL are getting a good deal, but LNC are also getting a stable base without having to resort to further capitalization/share dilution at this stage.
Possibly shorter's will still play with this in an endeavour to push the SP back down to cut their losses in the short term. If your interested in LINC, IMO between now and deal approval would be the best time to accumulate. That's what I'm going to do anyway. Time will tell whether that's the right choice or not.
PB was right for a change, it's a small cornerstone investment. For a number of reasons it appears strategically solid. 33% of something is better than 100% of nothing. Especially considering GCL are footing the majority of the bill and coughing up much need cash up front.
Now, if the Oil BPD increases as per stated and Teresa is sold in advantageous condition's. Then there might be more than GCL accumulating and pushing up the SP in the near future.
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