And in my respectful opinion, these competing "certain" views from @Novac and @ezirida serve to emphasise the uncertainty in relation to this issue!
While I am as bullish as any in relation to ADN (as would be clear from my posting in this forum), in my view the position regarding HPA activities has been less than clear from the company's recent announcements and I am looking forward to company expressly clarifying the position vis-a-vis the interrelationship between ADN's sole HPA aspirations (including via the AEM memorandum of understanding) and the Great White joint venture arrangements between ADN / MEP. My recollection is that others including @bcjk3 have made similar comments. In my view it is not enough to say with respect to HPA in effect that: "this is 100% ADN, it's a pure technology play" as that is too vague to permit concluded views about a range of material considerations.
I am aware that I have banged on about the topic, however, have posted on multiple occasions within this forum in relation to the issue of HPA business activities and the joint venture between ADN and MEP. Indeed my first posts on the matter were on 20 September 2020, here:
"One potential issue that comes to mind with that approach might be the specific terms / covenants of the joint venture agreement between ADN and MEP.
Hence:
1. There may (and I do mean may, as this is pure speculation) be some anti-competition restrictions that apply to the joint venture partners.
2. By reason of (1) above, ADN may be in a position where it would need either to: (a) negotiate ancillary commercial arrangements with MEP to be able to supply feedstock from Mount Hope to an existing customer of the joint venture; or (b) pursue Mount Hope as a separate project for HPA feedstock from the outset, with Great White and Hammerhead to siloed to the joint venture arrangements.
Speculative food for thought only - I would certainly be interested to know the particulars of the ADN / MEP joint venture agreement."
In particular I have asked @HarryKane on 3 occasions in the posts linked above about his statement about having access to a copy of the ADN / MEP joint venture agreement as stated in the MEP forum ("I have also looked into the JV agreement to see if there is any particular clause but it all looks 'vanilla'."), with no acknowledgement or reply. I am not sure why he has not responded to me? Come on @HarryKane! Otherwise I think it will be fair to assume in effect that: "some of us just know more than others". It would be most useful to have a copy of the JV agreement, however, ordinarily shareholders are quite limited in their access to information and records of the company.
Much of the confusion in relation to the topic could be removed if the specific terms of the joint venture agreement were made clear or there was a clear statement given to the market as to the settled arrangements between ADN and MEP with respect to HPA-related activities. The fact of the matter is we are all only speculating as to these matters for now and none of us (I assume) know for certain until such time as there is a clear announcement to the market about the same. This may very well be given once a firm decision is made with respect to the AEM technologies MOU.
The reason this is a niggling issue for me is because - my gut-feeling is that it would be rather "surprising" if a joint venture arrangement conceived as an HPA project would permit ADN to use the product and knowledge it has leveraged off that joint venture to then set up an HPA business in its sole right for its sole profit (whether by processing feedstock using its own plant or, alternatively, supplying feedstock to an HPA producer) unless: (a) the terms of the JV agreement expressly permitted that or there were no express restrictions on the same (personally I struggle to believe that HPA is not mentioned at all in the joint venture agreement document); and / or (b) the joint venture partners have already discussed and reached a separate commercial agreement / understanding as to the matter and what their arrangements will be once production is underway. I would be concerned if neither (a) nor (b) applied because those conditions may provide fertile ground for some form of commercial dispute in the future.
Last point, one thought that crossed my mind - having regard merely to ongoing speculation within the forum - is that ADN recently indicating that it intends to progress an HPA business in its sole right may be telegraphing an acquisition / merger intention with respect to MEP's interest in the Great White joint venture. I have nothing to go by in this respect other than speculative comments made by others.
All of the above is my own speculative commentary and is not to be relied on as advice in any form. For the avoidance of doubt I do not hold MEP but wish all shareholders in the joint venture partners the very best and note our destinies continue to be tied in a material way.
ADN Price at posting:
15.5¢ Sentiment: Buy Disclosure: Held
(20min delay)