Parchem - NICNAS approval, page-110

I would like to know how you arrive at the idea that the first "commercial" order for EdenCrete HC and PZ was "sitting in Customs" in Australia in Q1 2019, when the first "commercial" order from Parchem was despatched by Eden (from Colorado) on or around July 11th, (Q3 2019) to Parchem in Australia? Am I missing something?

See announcement: https://www.asx.com.au/asxpdf/20190711/pdf/446k0p0n4jlmgk.pdf

I would suggest that all "Customs" related matters were sorted prior to Parchem receiving their first EdenCrete HC & Pz "samples" for testing in Australia in 2018. Evidence that Parchem was regularly using EdenCrete HC & Pz "samples" for testing can be found in the announcement from July 11th, 2019 (https://www.asx.com.au/asxpdf/20190711/pdf/446k0p0n4jlmgk.pdf) where GS states: "Customer and laboratory trials of EdenCrete® products with Australian cements, slag and fly ash have been taking place for a number of months and are continuing to achieve encouraging results".

I believe that the problems/delays only started when Parchem made their first "commercial" order for EdenCrete HC & PZ on or around July 11th, 2019 (https://www.asx.com.au/asxpdf/20190711/pdf/446k0p0n4jlmgk.pdf). I believe that Parchem simply underestimated the difference between importing EdenCrete HC & Pz "samples" for testing, as opposed to importing EdenCrete HC & Pz for "commercial" use i.e. it is often the case that samples "with no commercial value and not for commercial sale" are treated completely differently by the authorities than commercial quantities that are imported with the intention of being "delivered for use by private and commercial customers". It is my opinion, that there was an unexpected delay in this regard. Nothing more, nothing less.

I strongly doubt that Eden despatched a number of 1,000 litre IBC's from Colorado to Brisbane without the necessary export and import "Customs" clearance paperwork. This paperwork comprises both "Export Documentation" and "Import Documentation", which includes a purchase order, a sales invoice, a packing list, a bill of lading, as well as a Certificate of Origin and specific documentation required by the buyer as well as the various governing authorities.

Given that it takes shipments (by sea freight) ca. 3 weeks to reach Australia (depending on which US state you are shipping from), and then another week to obtain Customs clearance, by my reckoning, this means that the first shipment of EdenCrete HC and PZ to Parchem for "commercial" purposes will probably have reached Parchem's warehouse in Queensland on or around August 11th (Q3 2019). Unfortunately, as I have already pointed out, there was a delay in receiving the permit to actually deliver EdenCrete HC and PZ for private and commercial purposes.

As I have just pointed out, Parchem probably received their first "commercial" order of EdenCrete HC & Pz in their warehouse on or around August 11th, 2019. Although GS said that sales in Australia were "anticipated" in Q3/Q4 2019, it was always going to be Q4 2019 at the earliest before any sales/deliveries could be announced. Obviously, with the delay in receiving the permit to be able to actually deliver EdenCrete HC and PZ for private and commercial purposes, these first deliveries will now take place from late January/early February 2020 (Q1 2020) onwards. Therefore, we have an actual delay of just over one quarter, which is regrettable, but not the end of the world.

Just to clarify: Parchem now have the permit to deliver both EdenCrete HC and PZ for private and commercial purposes in Australia, which means that orders can now be filled from late January/early February 2020 onwards. This will be quite a milestone for both Eden and Parchem.

In addition, what appears to have only recently happened, is that at some time in early to mid-December last year, Parchem appear to have made an additional order for 6 IBC's of EdenCrete HC & Pz (each IBC holds 1,000 litres) which is currently on its way to Australia (ETA: January in Brisbane). Whilst nothing major is going to happen overnight, this shows that Parchem is very confident about EdenCrete's chances of success. I therefore expect news of significant orders to be announced in the first half of 2020.

Summing up: Late January/early February 2020 is the launch date of EdenCrete in Australia i.e. product availability for private and commercial purposes, as well as the delivery of outstanding orders that have already been received.

Finally:

No great success was ever achieved without failure.

Whether you like it or not, failure is a necessary stepping stone towards achieving success.

Cheers,

MB49