I must say that I am massively in favour of the decision to go with AEM.
From a distance, I like the look of the AEM Directors on paper, and it appears to me that they have done really well in Canada; I don't know how much they paid for the Orbite acquisition, but I'm sure that someone somewhere will delight in trying to trash the purchase. To me it looks like a super buy; of course, not without risks and issues, but I've never experienced business that isn't exposed daily to an constant wall of problems!!!! It is the job of the entrepreneur and businessman to solve those issues.
In the UK, they have correctly identified a govt desire to transform the country into advanced manufacturing, and anything that supports that goal will be well supported. Great move, and suggests sound business acumen.
AEM have knowledge, and if they fail in their endeavours, ADN will quite possibly have an opportunity to mop up. That is great for ADN. If AEM do brilliantly, then ADN will also profit handsomely.
In theory, this is a win win for ADN and AEM, as every proper business partnership should be. ADN get access to knowledge and an exciting mkt, AEM get their hands on the best goods on the block.
Is it hard work for AEM currently? Of course!! Starting a business is never easy, and going up against massive incumbent parties is even tougher. None of the AEM competitors are going to be holding the door open for them.
As for starting small, that is completely the right thing to do - start small with modular infrastructure and grow fast from there once everything is ironed out and money is coming in. Starting small with a big vision is so totally the way to do it, this isn't a Hollywood movie, it's real life with real life dollars and cents.
Does it make sense for ADN to take a significant stake in AEM? I would say yes. A move into broader industrial minerals?????? Absolutely!!
There's essentially a funding round on the table for both AEM and ADN, why not explore a deeper tie up? If I were an institutional investor or lender, I would love a shot at a company with the best product, plus a strategic holding in an associated business in a lucrative and high growth area (which also happens to be part of the green tech revolution, by the way!!!).
As has been covered by others, HPA has been a possible target mkt for quite a while for ADN. Personally I see this AEM move as an excellently thought out opportunity and I am very bullish on the prospects and outcomes. Steady, calculated moves win the race, along with correct execution, of course, despite what armchair keyboard warriors may profess.
My vision for ADN has not wavered one little bit over the last year, at any time. And this announcement only serves to bolster my conviction further.
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