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The devil is in the detailsBetter read the MOU details 1. GIS pays ZERO royalty on first 150K sensors in 2017 2. GIS pays ZERO royalty on first 300k sensors in 2018 3. UniPink to lease their line to GIS 4. UniPink responsible to train line operators and maintain the line 5. UniPink required to purchase MILLIONS of sensors from GIS at cost plus 20% beginning 2017 through 2019 Bottom line - UniPink raised their needed cash to survive at least one more quarter but mortgaged their future to do it! It is obvious GIS is to take over the operation. GIS will be getting their $6M back by 2019 through COMMITTTED purchase of sensors by UniPink. Essentially UniPink is now a customer of GIS! Wonder how this affects the line of credit UniPink negotiated a couple months ago because that had many conditions attached to it? And finally, if this doesn't sound like a Kodak repeat nothing does, except when GIS builds their new facility and moves out UniPink will be stuck with a dilapidated/antiquated mfg line. The UniPink track record for getting the sour end of a deal will continue after all is said and done. Like I said, READ the DETAILS in the 8k! One more blast from the past, the PPS jumped over 30% the day UniPink announced they had "PRODUCTION" po's for diamond guard a couple years ago and we know what happened there. Wouldn't be surprised to see Hawthorne and Russell gone by end of 2017! Chinese have a way of taking over. |
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