RE:Money ran out long ago,Relative to the percentage PWR could potentially get for 50% of the net profits there now becomes a lot of variables that can occur.
1. PWR has put up virtually all the money for the purchase and development costs of Sage Ranch. I believe there would be a pretty good argument in court that they indeed are the rightful owners of Sage Ranch.
2. Back when PWR entered into an agreeement for 50% interest in the property somebody at corporate seemed to fail to register the 50% ownership with the County. That may also come back to haunt them.
3. If Ronnie Strasser is indeed fed up and wants to know where all his investment money in both PWR (17M shares) and his GRB investment (5M+ shares) I believe his ecomnomic resources and company knowledge certainly would allow him to investigate corporate.
4. If the company can't pay their lawyers then things like the up front costs for Montalva become insurmountable. See below :
"
In addition, the second reason was that some projects, despite having initially qualified, did not comply with the subsequent conditions (formerly preceding conditions). This includes corporate guarantees, interconnection contracts, among others. "The bail or “Security Amount” is one of the subsequent conditions that has caused a stir. However, according to what Energa Estratgica was able to find out, there are several amounts at stake.
1- Proposal Security $10,000/MW that is placed through a letter of credit on the same day the offer is submitted.
2- Non-refundable fees which are through bank transfer and cover interconnection studies. $225,000 for projects over 50 MW.
3- Performance Security (security amount) which is through a letter of credit and covers the risk that the project is not built and is executed after a time. The value is 50,000 $/MW.
4- Payment Guarantee or Corporate Guarantee of limited liability. The limited amount is up to 75 million per project."
That is over $80M for the first phase over Montalva. Greenbriar tried to have these fees waived but to no avail.
Conclusion- With not having any money, not having certain investors support and nothing left as incentives then Sage may end up on the block. And if Strasser is indeed pis_ed then the results may not be pretty considering his influence on both companies that are held in "a conflict of interest".
It may be the point for a new CEO, a guaranteed influx of cash and a factual case for at least moving Sage Ranch forward followed by Montalva.
Just some thoughts to rattle around.