Hey John, just have a quick aside for Zeev and then I add my input, for what it's worth, to your sound analysis.
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Zeev, good to see you out here. Have you, by chance, become aware of the proposed HR 507 that aims at making all patent applications publicly available 18 months after they are applied for??
This would pertain to GRNO as well, but most particularly to yourself. I understand there is considerable opposition as this proposal could possibly allow larger corporations to "plunder" the intellectual property of the individual inventor. I'm sure that Bill C. would oppose this legislation as well since his patent applications have been pending for several years and only recently does it appear that GRNO was able to obtain qualified Patent attorneys from the Nation's capital. Just wanted to know if you were aware of this.
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Now John...
My perception of this news release is only that GRNO now has $52,750 more in cash and $47,250 less debt. It also has obligated O'Brien and AMBIX to fulfill their contract or lose there deposit.
That means it is strictly positive for GRNO as the entire onus of finalizing the contract is on AMBIX. If this deal goes now further than this, so be it. However, I believe the news release states that construction will not begin until receipt of the first progress payment. You have to have a manufactured unit before you can install it... <wink> (I knew what you meant to say. Just joshing you a little.. :0)
As was stated elsewhere today, I'm also looking the first progress payment and commencement of construction by GRNO. But in my mind, I would like to a unassociated party (like the Turks) step forward and provide an alternative customer in addition. Should AMBIX make their first progress payment and not be able to raise additional capital, all that would happen is the second customer would find his delivery date expedited.
As for the cost of manufacture, I seem to remember a cost of $700-900,000, so we still have room for some profit if the subordinated note for the $1,000,000 remainder can't be counted toward earnings.
As for the royalty payment, I would suggest that a set royalty payment would not be favorable in the current fuel market. Rack price of #2 fuel oil is currently around .43/gallon and having a set price or .04/gallon royalty would equate to 10% on each gallon produced and that would not be fair to AMBIX, nor would it be fair to GRNO should the price rocket to some to some of the past highs we have seen during cold winters.
As for questioning GRNO news releases, I don't believe that any of need worry about that anymore. GRNO is still under the scrutinizing gaze of the SEC and I don't believe there is anyway that their current legal counsel will approve ANY news release that it not factual. Please note that the news release DID mention that GRNO does not have any knowledge of AMBIX's source of funds. As far as I'm concerned, I don't care so long GRNO gets money in the bank and starts building processors.
And I would opine that since the site location is in Bay City, TX, EVSI or associated parties are in some way involved. It may just mean that AMBIX rents tank storage from EVSI.. Quite frankly, I don't know, and I really don't want to know too much, if you catch my meaning. I just want to see GRNO get some money and let AMBIX figure out how to pay for the rest of it and get it operational. Like I said, should they default, I'm sure someone else will step forward and take delivery of the unit.
And Texas seems to be a more hospitable environment to petroleum based industries. I don't believe they will have many problems from conversations I've had in the past with people familiar with the Texas market.
Jmho... I don't know what will be required to recommence BB trading, but I'm not sure this will be sufficient. Still waiting for the big deals to come through.
Regards,
Ron |
