TSXV:SOP.H - Post by User
Post by
baystock1on Jan 23, 2023 6:53am
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Post# 35239177
SOP won't see a penny in revenues for at least 6.5 years
SOP won't see a penny in revenues for at least 6.5 yearsThis is not a 15% royalty as someone has claimed. Its a 15% carried interest where SOP will only receive its 15% share of profits after its share of all expenses are first paid. This means if the plant is completed in 3.5 years, SOP many not receive any income for another 3 years beyond that as all its 15% share of profit goes to pay its 15% share of cumulative expenses:
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The Counter-Party will also be entitled to recover their costs associated with financing and constructing the Plant and certain other project expenses once the Joint Venture starts generating revenues, prior to UAC being entitled to its pro-rata share of revenues from the Joint Venture.
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So with revenues to SOP starting in over 6.5 years away from now, expect a lot of share dilution as the company issues shares to pay for expenses to stay alive.