Hello all, hope the new years have been treating everyone rather...

Hello all, hope the new years have been treating everyone rather well. I've been surprisingly busy this year so far and don't have much time to dedicate to researching any of this, but just thought I'd throw this article up... seems to clarify a bit more on the new reliance deal and from what I can quickly gather they will be purchasing the shares, and then paying for the new plant separately... it doesn't seem to be a redundant setup (although not to dismiss the SGS concerns as i share them aswell!!) but a specific plant to test the different conditions in India which is to be paid fully by Reliance

http://online.wsj.com/article/PR-CO-20140123-900055.html

" The subscription agreement details the issue of $1.5m worth of shares and $5m of options to RIIHL with both the shares and option exercise price being set at the 90 day volume weighted average share price, which equates to 16.3 cents per share. The shares will be issued immediately and RIIHL will make additional investments by exercise of $1.2m of options over the next two years.

The technical and equipment supply agreements detail the technical goals that Algae.Tec will have to meet and the costs that RIIHL will pay for the pilot plant and technical supervision.

"This is a very exciting step forward by Algae.Tec" stated Peter Hatfull, Algae.Tec's Managing Director. "The new biofuels facility to be built in India, will be fully funded by Reliance Industrial Investments and Holdings Limited (RIIHL), leaving the equity injection to be used solely for working capital purposes"



Anyway, interesting to hear everyones thoughts on it, even classic skeptical Sdaji. Whatever way it goes, this has been the main goal, to further development through JV and financing from other companies... whether Reliance has more money then they no what to do with so just throw it around or they were truly impressed with AEB is to be seen... but at least we are getting attention from a lot of companies, a foot in the door is a great start.

All the best