GREY:XEBEQ - Post by User
Post by
Ciaoon Mar 29, 2022 11:45am
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Post# 34555593
Reducing risks with Summit Carbon Solutions order
Reducing risks with Summit Carbon Solutions orderThis is a telling paragraph to which XBC is reducing risk to itself and to it's customer. In particular, IMHO they want to secure parts to mitigate supply chain issues, at the same time XBC wants to manage their cash reserves,
"The equipment will be manufactured at Xebec Systems USA's (formerly UECompression, or UEC) Colorado facility. Xebec is also working closely with the customer and major suppliers to manage cash flows and supply chain risks associated with the project."
As an analogy, in the home renovation buisness, the contractor will ask for an up front payment so they can secure materials. It wouldn't surprise me that with this partneship XBC is doing the same. This mitigates the need to raise cash to purchase components. It defers any sort of immediate financing (that the SHORT would love to get in on so they can cover).