Toll manufacturing, when the manufacturer is global and AJX is just a startup, might be “capital light” in the sense there is no plant expense, but its working capital intense. Instead of invoicing the end customer and getting paid in advance of manufacturing which is another option, it appears that the toll manufacturer gets paid its margin over the raw materials by AJX before the end customer pays AJX or its agent. I havent been to any presentations, can anyone enlighten me on the way it operates?
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