"Lepidico Ltd (ASX:LPD) (“Lepidico” or “Company”) is pleased to...

"Lepidico Ltd (ASX:LPD) (“Lepidico” or “Company”) is pleased to announce that it has entered into an agreement with the shareholders of Bright Minz Pty Ltd (“Bright Minz”), a company controlled by director, Mr Gary Johnston, for its wholly-owned subsidiary, Lepidico Holdings Pty Ltd, to acquire all of the issued capital of Bright Minz. Bright Minz is the holder of the LOH-Max® process technology which was developed for the production of high purity lithium hydroxide monohydrate from a lithium sulphate intermediate."

"The consideration for the acquisition will consist of a trailing royalty in relation to any third party LOH-Max® licences entered into by the LepidicoGroup following settlement of the acquisition to the current shareholders of Bright Minz and a cash payment of $10,000 (as reimbursement to the shareholders of Bright Minz for establishment costs incurred by them)."

Well in return Bright Minz Pty Ltd will get a trailing royalty for any 3rd party licences signed by LPD. The $10,000 cash payment is just the beginning.

"The acquisition is subject to certain conditions precedent including completion of due diligence, receipt of any required regulatory or shareholder approvals and finalising a royalty agreement with the original shareholders of Bright Minz for the trailing royalty stream on any third party LOH-Max®
licences referred to above."

So LPD will takeover Bright Minz for control of the LOH-Max technology & in return if a P1 is built under the LPD name no royalties will be paid to Bright Minz & all shareholders within the Lepidico Group will enjoy the profits. But if a licence to a 3rd party is issued to use the tech, Bright Minz Pty Ltd will get a "trailing royalty"? Am I reading all that right?

Is that because the royalty payments from 3rd parties to use the tech won't be high enough to ensure all shareholders under the Lepidico Group get a decent return?

The original shareholders of Bright Minz will enjoy a trailing royalty stream though.

How much will the trailing royalty be I wonder?

So that's plan B if LPD can't go it alone, living off royalties? Is that why there's a mad rush to patent Lmax around the world? Why entities who own the tech intend to sign agreements to have trailing royalties paid to them if 3rd party licences are issued?

What will shareholders get under a 3rd party licence agreement with an income stream consisting of only royalty payments to LPD?