Lawless, as with any quality research, it's best not to pick small bits out, but rather consider the whole picture - that way each aspect is considered in context, and you are better able to deduce it's relevance and impact on your analysis.
Whilst it is old history, the QQ deal is worth understanding for anyone left wondering about it.
Why is worth understanding? Because it's a great insight in the calibre and ability of AGY to set their terms and deliver outcomes.
17 Aug 2017 AGY execute 3 agreements with Qingdao Qianyun (QQ), with QQ having 30 days to complete due diligence, including QQ had to obtain the necessary Chinese regulatory approvals for the payments outlined in the agreement:
1. Placement Agreement (PA) (ie strategic investment) for 19.9% of shares (198,516,087 shares) at $0.085/share for approx A$16.9m. Notably, the investment entitled QQ to a seat on the board.
2. US$7.5m Prelim OT agreement for product from first year production.
3. A seperate 5 year long term OT agreement.
19 Sep 2017 AGY agreed to grant QQ request for a DD extension, advising it must be completed by 1 Oct, noting the deal remains conditional on QQ completing DD, but more notably, obtaining the necessary Chinese regulatory approvals to make the various SI and OT payments.
5 Oct 2017 AGY announce QQ failed to obtain the Chinese regulatory approvals by the extension date, and hence had failed to satisfy the PA agreement conditions, but the both preliminary and long-term OT's remained in effect. (Note: subsequent to this, AGY made the strategic decision not to enforce these agreements and hence all ties with QQ have been severed).
In this same announcement, AGY advised they had completed a heavily oversubscribed CR with institutional and sophisticated investors to raise $15million via 68,181,818 shares at $0.22. IMO, a much better deal; less dilution, no Board seats given away and most importantly, no 3rd party access to the IP.
And to top it off, this new deal was the catalyst to bring forward the 77.5% ownership of the Rincon project.
So in summary... IMO, AGY set their terms, didn't roll-over, were agile in a changing environment and used the opportunity presented to deliver a better outcome for the company.
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