GREY:TSTIF - Post by User
Comment by
Drrwongon Jun 04, 2018 5:19pm
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Post# 28122593
RE:RE:RE:About car counting....
RE:RE:RE:About car counting....@bossu:
Getinge will be paying for the upgrades for its inventory, and TSO3 is responsible to upgrade its own units. Getinge will be paying for the 50-unit upgrade announced by RR on the call.
- Details could be found on TSO3's Sedar filing that showed the summary of the amended contract
- BTW, TSO3 had to incur an increased working capital in Q1 in preparation for Getinge's upgrade (i.e.: buying parts), which overstated its cash burn on a normalized basis
- Also, if Getinge pays for the upgrade but the deal eventually falls apart, TSO3 can still buy back these upgraded VP4s at $33k/unit as per the amended agreement
We know TSO3 is only buying inventory from Getinge on a as-needed basis (i.e.: after they receive a firm order). After that, there will still be lots of time to upgrade the unit before it is actually shipped out to a TSO3 customer.