Phase 1 - A wide range of companies put in a request for funding. Many are unsuccessful and this announcement will put a grant size next to successful companies. Its announcing the intention to do a deal, if suitable T&C's can be agreed.
Phase 2 - Detailed T&C's are confirmed in relation to the proposed grant. What does the company need to do by when to receive the payments. For example the grant may have staged payments upon particular milestone's within the construction of the plant. The more front-end weighted probably the better for E25 but some government grants could be back-end weighted and become more akin to reimbursements upon milestone achievements. This would be a low-risk approach from the US govt because they only pay when they know they will get the outcome intended. The ultimate back-end weighted grant would be payment upon accepted delivery of HPMSM to customers. E25 may still need to agree a back-to-back financing agreement that would be repaid by the grant. Still lots of details to be confirmed.
My interpretation is that award negotiations is Phase 2.
Given E25's position they could put practically any T&C and E25's going to say ouch but ok.
E25 Price at posting:
21.5¢ Sentiment: None Disclosure: Held
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