Eurocontrol Technics Ord EUCTF

For the gamblers

[kidl2]

There is now a contract within reach. The odds of SICPA winning it has improved from 3 to 1 to 2 to 1.
 
The pricing of this contract leaves essentially no room for EUO’s 5%.
 
Anyone care to guess what happens if SICPA wins this contract?

[Joseph_K]

Ok, I'll bite. Just to be clear, outside of the substantial up front cash payment EUO received from SICPA in the GFI sale, EUO was to also receive 5% earn-out payments on all future GFI contracts. This is money SICPA is contractually obligated to pay to EUO for a limited amount of time. If I'm remembering correctly, the deal was done in January 2016 and the 5% was for all GFI contracts

[kidl2]

Yes, it certainly would be BUT there is another theoretical outcome:   SICPA decides that litigation is cheaper than paying the future royalties as they have their own in-house lawyers as well as lawyers around the world on retainer.   If EUO gets cut off from the SICPA payments, it will probably run out of money within 12 months given EUO’s typical burn rate plus the added

[Joseph_K]

It looks like the pumper and basher mobs took the weekend off and it is only you and I discussing this kidl2. A couple of comments.  In my first statement below I should have said the earn out payment was only for deals signed in the first five or six years.  I don't remember the term anymore. SICPA bought a bunch of EUO shares and had at least one person placed on the board of

[Chutzpah]

Joseph you should change your nick to Oxymoron since you are trying to sound intelligent yet at same time state you are bidding to buy EUO

[kidl2]

Joseph: SICPA holds approximately 11.8 Mil shares or 13% of issued. Never sold any according to SEDI. By far EUO’s largest shareholder. I had an average cost calculation but can’t find it right now. From memory ... Somewhere just north of $0.14 which means they are sitting on a paper loss of around $1 Mil. No big deal for SICPA but surely a number they will take into consideration regardless what

[Joseph_K]

Thanks kidl2.   I thought they started buying in the .17 range when they wanted a seat on the BOD, but I didn't know how many they'd managed to accumulate as they kept buying. I don't think the paper loss would affect any decision going forward.   If they buy and wind up the company, it is a loss that can probably be applied against other taxable gains.   

[SuperMoney]

Joseph, totally agree with you. This is why I am holding shares for both EUO and OEE. I am also bidding for both EUO and OEE right now. By comparing to EUO, I think OEE has stronger fundamentals and greater potentials for making some profits. How do you think? Hopefully, our bids at the bottom prices can be filled before both of them move up. Thanks again for your comments. Cheers.

[kidl2]

Joseph: You are relying on SICPA doing what’s “fair” and to a certain extend to what SICPA could do to get out from under without kicking up another fuzz.   Given SICPA’s history, this is wishful thinking. SICPA has well documented history of entering into deals and then challenging the terms of these deals. Heck, they take on countries without hesitation. Taking on EUO is nothing more than a