Junebug, I suggest that it does answer your question.  North Cal expects Hollund to carry through with their business plan, and want them to prove that they will.  Could North Cal buy Hollund right now?  Of course they could.  But what exactly would they have, and what would be their liabilities?  Remember, a major sticking point for Hollund's move to North Cal is the ability to obtain reasonably priced insurance, because rates for this industry are still based on human divers risking their life and limbs.  Also, we know that Hollund's acquisition of the rights for the TigerLynk hinged on its use in other areas (underwater mining and oil rig maintenance), so why would North Cal want to spread themselves in those directions?

I have said before that I don't expect North Cal to purchase all of Hollund.  If they did, they would be going into areas where they have virtually no expertise.  But they could buy all or a major part of the logging business once that business is fully established.  They will pay more at that point, but they will be buying a proven and successful company, and North Cal has the distribution and sales force with world-wide connections to make that business even more successful.  Who knows, they may wish to become major stockholders in HIMR.