Listening to the conference call, I don't believe "weeks" is likely but happy to be surprised. Money will be paid to SEH it is just a matter of what percentage of total revenue SEH will receive. I think there was an expectation MIE would get 51% and SEH would get 49% until the ODP is approved, however it appears the contract is not overly solid and the SOE is trying to change the percentage. It is a tricky balance for management between being walked over by the SOE and giving the SOE what they want, keeping them "on-side" and make the transition through the CRR and ODP process to approval a little bit "friendly".
My concern is the SEH management stopping the production at SJB and what the Chinese SOE will withhold in the meantime as a punishment, or whether they'll choose to be difficult.
I have a feeling this is more the reason for the sell off, as SEH waiting for $5mill is hardly a reason for the market cap to be smashed by 50%+
SEH Price at posting:
2.9¢ Sentiment: Hold Disclosure: Held
