Enerdynamic Hybrid Technologies Corp. EDYYF

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Enerdynamic Hybrid Technologies, is a Canadian-based company delivering leading-edge energy solutions. EHT’s clean and renewable energy solutions are easily deployed and customizable. The Company is able to combine and integrate solar, battery storage technology, and energy efficient structures that qualify for being “NET ZERO”.

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Enerdynamic Hybrid Technologies Corp. > Ghana Joint Venture Property

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Comment by TriumphSpitSixon Feb 27, 2020 5:15am

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Post# 30739050

RE:Ghana Joint Venture Property

This does seem to be a promising development but I'll fully believe it only after seeing the numbers in a financial report filed with the gubmint.

And before y'all throw a big party due to what looks like a $51.3M CAD windfall, it should be pointed out that although yes, the project land was granted by the government of Ghana to the JV, they only "own" it in a technical sense. They don't have clear, unemcumbered title in fee simple to this property like most people own their homes and acreage. They could'nt simply sell or divest of if they wanted to... that is, without serious consequences.

The UCI/Ghana contract states (Clause 4.1) that the land is being provided "for the execution of the Project" and that the Contractor (the UCI/EHT JV) is being provided the "right of access" and "possession." This should be interpreted as right of access and possession for the express purpose of executing the Project and no other. This is stated in Clause 5.1: "The Contractor shall be responsible for completing all aspects of the construction of the Project." It's also the Contractor's responsibility (Clause 5.10) to "secure funding for the execution of the Project" meaning, this land will end up being the collateral for a big fat loan to build these homes and infrastructure.

So, yeah, the JV "owns" the land but really only technically. If they failed to perform and just sold it to pocket the funds, they would most certainly face claims of breach of contract, lose the contract (of course) face claims against their performance security insurance (Clause 14) and potentially face litigation to recover the property, funds, etc... So, while they can recognize their 70% stake in the land asset on the company's books ($51.3M CAD, $45M USD) it's really just moving numbers around. Big asset on one side, offset by a big loan and bigger responsibilities on the other.

Again, looks promising for a re-valuation of the company with this substantial assets on the books, just don't get it twisted.