Largo Inc T.LGO

The VRFB-leasing model and LGO share prices

[kha341]

Personally I don’t think that we will see any definitive battery-leasing contract NR until the mechanism/engine for the battery-leasing model is in place (or near completion). Just a few NRs announcing some negotiation-in-progress would be enough to excite the market. IMHO.

The success of LCE is dependent on the success of the VRFB-Leasing model. The LPV-CPC arrangement is the mechanism/engine for the Leasing Model. The result of the LPV-CPC deal will be the creation of a separate entity holding physical Vanadium to be leased mainly in the form of electrolyte solution to the VRFB end-users in exchange for periodic payments (thus providing a low cost solution to the end users who will save on upfront capital spending). This new entity will be publicly traded. So if this concept can attract investor interest then its Initial Public Offering will be a success which in turn will be a clear indication of the bright future of LCE. Investors would be attracted to this concept only if they believe in the ability of LCE to lease its VRFB. So, IMHO, we only need  a hint of a positive investor sentiment for Largo stock to shoot up.  

[Drhoho]

Kha, in complete  agreement with you. One likelihood of the LPV-CPC setup arrangement, if successful, is that Vanadium held by LPV will, by that company becoming publicly traded and valued based upon its Vanadium assets , be able to be traded along with other precious and non-precious metals, something Vanadium has not been able to do presently. I do not know of any entity buying or producing

[kha341]

1) LPV is a shell corporation formed under the laws of the Province of British Columbia. It is a corporation without business operations or assets thus no value per say. It costs Largo pretty much nothing to set it up. “Prior to entering into a definitive agreement in respect of the Proposed Transaction, LPV will complete a private placement for up to USD$500,000 (the "LPV Private Placement

[Drhoho]

 The LGO press release of CPC/LPV creation is notice of a planned beginning, with multiple mentions of the work in progress and no guarantees of outcome. The devil will be in the details, especially how it may affect LGO sp. Further 2022 LGO press releases will be forthcoming with, I believe, the filling in of necessary additional puzzle pieces. I am optimistic about the outcome and the

[kha341]

They simply have no choice. No company can predict the outcome with absolute certainty. All business plans / transactions / decisions / etc may fail to come to be realized for whatever reasons. It is how forward-looking information is communicated to the public to avoid the risks of potential legal action against the company.   

[NewAgeMetal]

Kha,  Any significance to BC? Why BC?

[kha341]

My guess: Column Capital Corp (CPC) was formed in BC and  is located in Vancouver.

[kha341]

Largo Physical Vanadium Corp. is a corporation formed under the laws of the Province of British Columbia.

[NewAgeMetal]

Right but Largo had one officer in Canada, EC in Toronto, like 4 provinces and 3 times zones away, why incorporate in BC instead of Ontario?

[kha341]

Who really knows? Perhaps an agreement with Column Capital Corp? Perhaps something to do with the B.C jurisdiction? Apparently B.C, Sask and NWT are the most relaxed jurisdictions to do business within. Apparently if you are registered in B.C you do not need to get an extra-provincial license to operate within Ontario but not the other way around. Anyway, who knows?

[kha341]

We are talking about LPV, a corporation without business operations or assets, right? The new entity (CPC-LPV) has not been formed yet. I have to think that the most optimal jurisdiction will be selected by the proper people for the new entity upon completion of the deal.  Btw, FYI: Bushveld Energy is located in Johannesburg, South Africa;  Invinity Energy System is headquartered

[Napier01]

Setting up another corporate entity to manage the leasing of electrolite makes sense to me but it is a bit surprising that Largo decided to locate it in Canada. KHA suggests a good possible explanation for why BC rather than a more nearby province, but I wonder if this is also a foothold for future action in Canada. The Canadian government has a significant green program as well a priority for

[kha341]

I believe that the new entity (LPV) will only handle the leasing as it will be the owner of the physical vanadium. Everything else, including manifacturing, sales, maintenance, ect. of the VRFB, will be still be under the control and responsibility of Largo / LCE