Hi bagholder62,thanks for taking the time to provide a reply....

Hi bagholder62,

thanks for taking the time to provide a reply. I’ll follow your lead on ‘Traxy's will buy everything’.

If Traxy’s wants to play consumer then here is my question. To what spec is LPD making the specialty product that Traxy’s will purchase? Is Traxy’s taking whatever spec LPD decides to achieve and then turning around trying to speed date with an end consumer who just happens to require that exact chemistry? Obviously seems back the front to me so was wondering if anyone here had worked it out?

The announcement clearly says that Traxy agreements with end users will then be back-to-back with LPD. If future agreements are yet to be signed then by what ordinary definition of ‘binding offtake’ can we understand the announcement?

Why am I interested? Based on the information in the announcement this is not the usual assurance that would satisfy a financier (either equity of debt), especially given specialty chems. For example, regardless of what LPD and Traxy’s choose to call their internal agreement, as a financier I am saying to LPD ‘tell me exactly where the money is coming from’ and then to Traxy’s ‘are you going guarantor over the loan if LPD product doesn’t meet end user specs’.

It would be great for LPD if it has outsourced that risk. That would be a good commercial outcome. It just seems to me that my speculation above is fanciful and so there is likely more work to address risk before full finance can be secured.

perhaps there is no way to peel back the onion at this stage. I just don’t want to get carried away if risk is still on the table and final equity is yet to be raised.

Regards
AM74