Does GLK have a formal agreement with Ashland ? The recent GLK corporate presentation stressed the importance of the partnerships GLK has entered into, specifically the one with Ashland Advanced Materials. I have been trying to verify if there is a partnership or any formal agreement with Ashland Advanced Materials. Such a formal agreement is essential to protect both GLK’s and the shareholders interest if there is a significant breakthrough or a large contract award. Recent press releases by GLK has the following statement at the bottom
“The Company has partnered with Ashland Advanced Materials for commercial-scale purification operations at Ashland's 110,000 square foot purification facility located in Niagara, New York”
This clearly states that a partnership is in place. However, the only reference to this possible agreement is found in a March 22, 2017 press release which states
“Towards this end, Great Lakes Graphite and Ashland have executed a Memorandum of Understanding that establishes a framework for now moving towards a definitive agreement that will formalize the terms of the partnership.”
The question is simply this; does the above agreement protect GLK’s shareholder interest? And, does the above press release give GLK the right to advertise that it has partnered (implying a partnership agreement) with Ashland Advanced Materials when there is yet (6 months later) no formal agreement? Since there is no announcement of a formal partnership, GLK and its shareholder interest has no protection in any dispute, and, GLK probably should not be implying an agreement in the press releases and company presentations. Unfortunately, there are other agreements with this same issue.