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9.7¢ redflow limited

Ann: Redflow expands into China, page-7

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dyeman

4,203 Posts.

786

17/05/19

10:54

Post #: 38610994
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Originally posted by TerribleTadpole: ↑

During the deployment period, the agreement entitles ZbestPower to use the Redflow system for nocharge. Redflow will remain the owner of the system, which will be returned to Redflow at theconclusion of the demonstration project. Redflow will also retain all intellectual property in the Redflowsystem, including improvements.

So we're getting a foot in the door to an enormous market, which is awesome, but we're carrying the cost of a quarter-million-Aus-dollar asset for the duration of the project. There's no indication in the announcement of whether we're getting partly or fully reimbursed for our sunk costs: transport, travel, accommodation, technician wages...

There's also the risk of having a potential competitor's engineers crawling all over our gear to pick up any attractive design ideas... for nothing.

I'm having trouble making up my mind how positive this announcement is.

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Agree with your sentiments, but China was always going to be high-risk high-reward.

Augurs well for the capital raising though.

RFX Price at posting: 6.5¢ Sentiment: Hold Disclosure: Held
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