News: WOA Wide Open Agriculture Says Unit Signs A Non-Binding Term Sheet, page-5

"They like the product enough to take over distribution,"

So, if INGÅ likes it then they will make a healthy margin on their sales surely? If so, then why does WOA have to give them so much for so little cash in return?

Thinking further about the IP and letting them share that, how come there is no licensing arrangement? Nothing like this was mentioned in the announcement. If INGÅ wants to protect itself against WOA going belly up and so losing supply of a product that they have invested in, then an escrow arrangement of the IP makes more sense for WOA. Otherwise, a licensing arrangement whereby WOA receives income if INGÅ starts producing the product may be appropriate. A company's IP is one of the most valuable things it holds.

I find that this company keeps on demonstrating naivety.