Hello, I am not sure where you are getting the 500K number from, but if it is from the LOI, that was to be paid over an 18 month period. The terms of the final contract agreement might vary significantly - we can't know just yet. The latest Q shed some light, it noted "The Partnership called for B&B Madera S.A. to provide the funding required for the initial project and the Company has paid the aggregate $157,500 (inclusive of deposits, professional fees, penalties and final concessions/work-permit cost) as of the date of this report. Under the terms of the Contract Agreement the Company has acquired a 13.8% share in BLWP and a 9% profit share." Later HIMR raised that, presumably, to a 25% share in BLWP and a 17% profit share. Notice that B&B Madera S.A. has some sort of funding requirement for the project, though "provide the funding" might mean secure a loan. Also note that as of that disclosure (Q3 2013), they only drew 30K on the the Vera Group line of credit of credit of 350K. which was secured to fund the start up of operations. Also, there was more than 900K of borrowing power on a couple of other lines of credit disclosed. As they commence operations, funding options should improve significantly. The prospects for contracts and pre-orders is good and has already been comfirmed to a degree.
Funding operations doesn't seem a major problem, though the dilution risk posed by the accumulated debt to get us to this point is probably bigger than most are thinking. Are we sure we want pictures? We would be better off with a bigger buyback and staying down would make that more realistic.
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