Qsolar Ltd. QSLRF

RE:RE:RE:RE:RE:RE:RE:Canadian Insider - Mr. Tapakoudes

[mercurysmith]

Stimuli, we have discussed before that the main asset of Q is its intellectual property which is now UL certified.  Q doesn't have the working capital to do all the manufacturing and distributing of the product.  A tier one company with a multi-billion market cap already has such manufacturing facilities and distribution networks in place and could easily transition into the manufacturing, distributing and marketing of products using their brand name but built upon Q's intellectual property.  Whether that is done by licencing agreements or through a buyout of Q will ultimately lead to the same end result.  This is a business decision that is analagous to whether a buyer of any company wants to buy the shares or the assets of that company.  

Putting a value on the intellectual property is very complex.  That value won't be determined by how much money Q spent to develop the intellectual property, but rather, by the future earning capacity relative to the purchase cost of obtaining the intellectual property.  Whether the value is $25 million or $250 million is impossible for me to say. There is no comparable sale of any such intellectual property.  Suffice it to say that it has sufficient value that even though Q is cash strapped, that intellectual property could be sold in return for several million dollars, thus I doubt Q will be going under.  

Hopefully there is more than just one suitor wanting to use the intellectual property because competition will definitely help create a better price from Q's point of view.  Any manufacturing and sales done directly from Q will likely be limited to countries where no extra import tariff applies (places like China, Pakistan, India, Africa).    At the very minimum, Q will want to team up with one tier one company for North America manufacturing and distribution.  That company may want to pay a bit higher price to have the worldwide rights.  I have no doubts but what some potential suitors are speaking with Q, but as a retail investor I obviously have no way of knowing how serious any such discussions are or what price range is being discussed.  We are currently in a "wait and see" mode but hope Q moves to "show and tell" mode and on to "offer and except" mode.