Strategic Review = a step in the right direction Largo Inc.'s board of directors has initiated a review and evaluation of strategic alternatives with the intent to unlock and fully maximize the value of Largo Clean Energy Corp. (LCE).
The comprehensive review and evaluation process will include consideration of a full range of strategic, business and financial alternatives, including, but not limited to, evaluating and completing financing transactions at the LCE subsidiary level, mergers and acquisitions of LCE with other battery companies, and partnership opportunities with well-established energy system producers that are interested in entering the vanadium battery sector with the unique elements that Largo offers to this industry.
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There can be no assurance that this process will result in any specific strategic plan or financial transaction and the company does not plan to provide updates on the status of the review unless there are material developments to report.
Having said that the strategic review is a step in the right direction, I must add that we should be realistic in our expectation of the outcome. Personally I view this as a "better-late-than-never" salvage operation. But it’s just me.
Don’t forget that, after 8 months of negotiation, Largo has just failed to secure a joint venture agreement with the Italian firm Ansaldo Green Tech (AGT) for the Manufacturing and Commercial Deployment of VRFBs in the European, African, and Middle East Power Generation Markets.
“AGT is a subsidiary of Ansaldo Energia S.p.A. (“Ansaldo Energia”), which operates in the field of renewable energy with a view toward innovation and with the goal of developing, manufacturing, installing and servicing products for the energy transition from traditional sources of energy to renewable forms of energy. AGT has an extensive knowledge of the European, North African, and Middle East markets in the field of the power generation. Ansaldo Energia is a leading international player in the power generation industry providing full-service solutions to its customers”.
My 2-ct
DYODD