Wayne got back to me yesterday. He actually responded on Monday and asked for a bit of time to properly respond because he was busy. That's a great sign and I'm always pleased by Wayne's preparedness to respond to my queries in a prompt manner. Most companies don't act that way.
Wayne says the IP situation is that there are two patents they are pursuing. One is to do with JelliGrow, the other to do with the manufacture of Nullarbor. They are in the public domain and can be searched for. One is in the national phase and one is about to enter the national phase.
The ASX announcement about the Grasim collaboration said "The parties will work together exclusively to further refine and develop the process to enable fibre production on Grasim’s pilot spinning line at the tonne scale. Both Nanollose and Grasim will jointly own any new IP generated in the project". He sees this as a good arrangement and makes the relationship with Grasim stronger.
What's stopping Grasim from ripping NC6 off?
First, legal arrangements which include things like confidentiality and ownership of information and IP, exclusivity, etc. Grasim's reputation leads Wayne to believe Grasim won't screw us over as a result.
Second, the climate in the fashion sector means that companies' reputation is very important. If NC6 is a success, it will reflect well on Grasim, and Grasim doesn't want to be known as accompany that screws over the little guys.
I know it's not iron-clad certainty that everything will go well, but I'm inclined to believe that it will.
I hope that answers your question, at least a bit.
There are risks, with this company, but I don't think Grasim screwing us over is one of them.
NC6 Price at posting:
3.8¢ Sentiment: Buy Disclosure: Held
