Ann: Zoleo JV Arbitration Update, page-27

currently 0% of North American Zoleo royalties is paid to BCC. 70% goes direct to Roadpost, 30% goes to the JV (Zoleo Inc), which BCC owns 50% of but doesn’t consolidate the revenues of so it is never included in BCC accounts.

I reckon part of the dispute is how many expenses are put into the JV budget that predominantly benefit the US market and obfuscate the true profitability of the entity. The US distributor should either bear more of these costs themselves or just have everything under 1 owner so these concerns are moot.

Even without changing ownership you could say BCC should at the very worst benefit from 15% of the USA royalties which would be like a few mil operating profit on top of current levels probably. I think that bodes well in the favour of a payout scenario that RP would have to factor in the JV’s cut from US market that in any buy out price.