Offtake Partners/ FundingI would not worry about operational ( working ) funds.
We are funded for all requirements thru to October, 2011.
Lignol has a Sustainable Development Technology Corporation (SDTC) funded consortium comprised of a half dozen or so industry partners.
SDTC is an arm's length foundation created by the Government of Canada which operates two funds aimed at the development and demonstration of innovative technological solutions. In addition to funding from SDTC's Tech Fund, Lignol has received financial and in-kind support from its consortium partners to pilot and commercialize its Biorefinery Technology.
The Budget was just approved and I am sure ,given Lignol's tremedous advances, that we shall soon see additional funding that will take us thru to the end of 2011.
Its pretty obvious that technology developments are continueing to drive down Lignol's capital and operational costs and that an offtake agreement for its HP-L production is very near.
That offtake agreement ( perhaps with more than one JV partner ) will provide the upfront capital to construct the new Biorefinery ( or expansion of the current pilot plant ) and will garranatee markets for the HP-L production volumes.
Ethanol production will be a substantial byproduct of this biorefinery.
There is also the possibility of " Green Funds " to support Lignol's utilzation, as feedstock, such as the long-dead, beetle-killed Lodgepole pine forests of B.C.
That alone could keep one biorefinery going for 50 years.
Lignol's SDTC includes its current customers for HP-L and they are all blue chip international players such as Kingspan Group PLC, PPG Industries, Metso Paper and Novozymes ( Lignol's former VP just joined Novozymes )
We should also include Pacific Ethanol which is working with Lignol to convert its corn-based feedstock to include cellulosic sources.
Then, there are the 100 or so patents either approved or being readied for approval.
These may obviate the need for Lignol to proceed to producer status.
I guess what I am trying to say is that Lignol is in an advanced state of tertiary product and process development whose patents permit it a variety of ways to monetize its assets and technologies, and that capital requirements will not stand in the way of its advancement.
And, a straight takeover is also possible.
Options are at 23 cents and you can be sure they will get plenty of opps to be exercised over the next coming while...