Sorry @ywtoh,Maybe I wasn't clear.I do not think Fluence...

Sorry @ywtoh,

Maybe I wasn't clear.

I do not think Fluence management will ever entertain selling a stake of the company to any Chinese SoE.

The reason for my spiel above was in response to your talk of CGGC being a mismatch, I was of the opinion that CGGC also wanted to look at buying part or all of Emefcy, or trying to offer big business to see what the cheapest possible price was for MABR spirals. I was saying that the likes of Three Gorges and BEWG aren't all that different to CGGC. They will happily acquire part or all of a company like Fluence in order to reap the long term benefits of owning their technology suite. I believe that the plant being built in the Ivory Coast would also be of interest to the Chinese, as there are many Chinese water bodies affected by cyanobacteria toxins, and not many ways to effectively treat it for drinking where taste is not affected.

There are those who questioned the timing of Fluence raising capital when they did. Being in a strong financial position during partnership negotiations like this is important. Part of any partnership is proving a strong balance sheet, look what Fluence are dealing with in Mexico with the San Quintin plant, with local contractor partners not being able to currently afford their equity contribution into the partnership and contributing to holding up construction and disbursements.

Fluence can now have conversations and technical demonstrations with prospective partners knowing they have funding available to invest in building these partnerships, for example co-investing in demonstration plants, hiring dedicated staff to work with each partner, and adapting the technology to the partner's requirements and provincial standards.

Without this funding, the future is more clouded, and guarantees cannot be given to prospective partners. Seeing a weak balance sheet, SoE's may offer their "help" with investment and financing. To turn down that investment, when it is obviously required, in lieu of other methods of raising finance is a potential slap in the face to the Chinese (ie, your money isn't good enough, we don't want you on the board of directors, we don't want you to own any of the company), with the Chinese "saving face" attitude it can cause a partnership to break down (you want our business, but you will not let us invest, even if it is required, you are therefore not a good partner).

With the additional $36 million AUD that Fluence have raised, and potential $6 million more from the SPP, it is easier to demonstrate a strong balance sheet and therefore alleviate the types of discussions above and focus on the benefits of technology and potential business opportunities.