Ann: Response to Speculation, page-1349

nah mate... that confusion was based on something you posted on the weekend about selling everything.

it does tell me that things you say are...

I think the selling is quite clear.

It's probably tied in with the article released from the press 2 days ago, that included

"... (the Optimum Nano) Parent company posted a 3.7 bln yuan loss in 2017 after forecasting a profit..."

That is a loss for 2017 of approximately $775 million AUD.

No wonder the banks have frozen some of JRO's accounts, they probably can't make the repayments, in fact I'm sure of it.

And JRO have slashed their battery production to 20%.

So, can someone please tell me how JRO are going to be able to pay AJM for stage 1 off-take?

This would be most enlightening, because you can completely forget about the banks lending them any more money to pay AJM, and they are not making any money while their battery production is at 20%.

JRO will collapse, and go into administration and receivership IMHO, and probably sooner than later, because no company can sustain those losses, and they have no hope of getting out of it if they are only producing 20% of capacity (because they have very little to sell).

It's just common sense.

My sense is that at some point JRO will have to see reason, or their administrators/banks/creditors will make them see reason. The banks will want their money, and I think this will mean JRO has to off-load and sell their stake in AJM.

So who will step up and buy JRO's ~17% stake in AJM - and at what price?

I also think the potential bid by JRO for AJM is a furphy. What they are trying to do, is find a financier to save them from bankruptcy, and they are using their "potential" ownership of AJM as an enticement. But it won't work, JRO are still going to the wall.

Gw