LEC Did Not Turn Down DOE Funding...chalkmarks you said, "To me that is extraordinary. I can't recall at the moment the last time I heard of a business turning down government money although there must be a comparable case somewhere.
It sounds to me as if there are competing suitors - no other circumstance could call for a termination of the DOE $30 mill deal at this time. This can only be good news for shareholders"
I'm not sure that is totally accurate. Read the news release closer and you'll see that LEC did not turn down the remaining money available thru the DOE, rather that the current business model LEC is pursuing cannot continue to be funded thru the FOA (Funding Opportunities Announcement) created by the Department of Energy in the US.
"In recent consultations with the DOE, it was agreed that Lignol's current plans cannot be supported within the FOA. Lignol will continue with engineering, technical and project development work, which the DOE has been funding, to meet certain reporting milestones that are expected to be completed in the coming months."
Just speculation on my part, but Lignol is not concentrating their efforts on producting ethanol as their primary producct, rather their primary market for their patented process will be HP-L Lignin, and that IMO is outside the requirements of continued funding by the Department of Energy as they are helping new ethanol technology.
Kind of a catch 20, as LEC's proprietary technology will produce ethanol as a by-product and not a primary product, thus producing low cost ethanol for their secondary market. Thus the dropping of further DOE funding IMO.
It's now up to management to continue to follow thru on their goals. I don't see the dropping of DOE funding as a negative, but the market doesn't like to see uncertainty. Hopefully we get results soon, followed by some form of deal or deals for this revolutionary technology. atb