I can't see anything indicating that Reliance is going to buy shares/exercise options as well as pay for anything. Reliance will fund it, just like if they offered millions of dollars worth of 16c shares to existing shareholders that would fund it. Someone correct me if I'm wrong, but all funds coming to reliance will be in exchange for discounted shares (relative to current price). There has been no details of a joint venture given. Reliance isn't putting money on the table in exchange for a direct share of future earnings, they haven't undertaken to hand over money for a percentage of revenue or anything of the sort.
We've just been told that maybe that will happen in the future. Hey, maybe BHP will give them a billion dollars for 1% of their revenue, maybe the Indian government will send me a billion dollars in exchange for 1% of my lemonade stand revenue, who knows what the future holds? It's worth taking seriously when a binding agreement is made, but that hasn't happened.
What conditions are different in India? Algae is algae, sunlight is sunlight (it varies in intensity but it should take no more than hundreds of dollars to measure the local solar radiation, not millions). If the previous plant's findings are not usable, then that effort, time and expense was a waste, which seems to me to clearly be the case. Heads should roll and AEB should be providing an explanation. Shareholders should be demanding a please explain - where is the SGS report, or where is the explanation of why it has not been provided? They should at least be able to provide a reason why their promise was not kept and why a new multimillion dollar pilot plant is required.
All based on my interpretation, I'm fallible, happy to be corrected, etc.
AEB Price at posting:
18.5¢ Sentiment: Sell Disclosure: Not Held
