Thanks
@Drumo,
First of all just a reminder of what an MOU is for.
- It is to formulate the general aims of two or more companies
- These aims may be the same or could in fact be different for each company.
- The Agreement may or may not have binding requirements in which liabilities exist
- To create or stimulate Public Relations.
It should be pointed out that MOUs are a standalone document. They are NOT a roadmap to an Agreement. You do not need an MOU to have an Agreement. There are also many MOUs that have no need for an Agreement.
The Announcement released does not state much at all other than to say that the two companies will collaborate om signing an Agreement and Business Development. This tends to be the common theme of these recent MOUs. Given that the company, to my knowledge, has not hired any Business Development, Sales or Marketing folks then one assumes that the MOU was to announce that the two companies will work on an Agreement. Question here that should be asked is what is there that needs to be negotiated. ADRC is a technology that is provided as a licence for manufacturers to use in their product solutions. An Agreement should really only be a License Agreement. The only matter to discuss is price and quantity. All of this should typically be a template document. Any negotiation should be relatively quick.
This Announcement along with others similarly announcing MOUs did not have any quote from the other company. Typically you would want to have them say something. That brings strength to the announcement. I’ve not checked any of the other company’s websites or anything so unsure as to whether they have made similar announcements. That would certainly indicate the importance they place on the collaboration.
So, given all of the above, it would appear that the main purpose of the announcement was to stimulate some PR. Typically PR is used to create attention to your company. Generate interest in what your company is offering. You would position your PR amongst media that your target customers access. Outside of ASX, has this announcement, or other recent announcement be shared with the wider IoT industry? I’ve not see anything. While communications is important and generating interest in your company also important, you have to ask yourself why is it that these announcements seem to only appear on the ASX. Remember, you typically target PR towards your customer base.
Hope that helps.
(20min delay)