SOPerior Fertilizer Corp V.SOP.H

SOP won't see a penny in revenues for at least 6.5 years

[baystock1]

This is not a 15% royalty as someone has claimed. Its a 15% carried interest where SOP will only receive its 15% share of profits after its share of all expenses are first paid. This means if the plant is completed in 3.5 years, SOP many not receive any income for another 3 years beyond that as all its 15% share of profit goes to pay its 15% share of cumulative expenses:
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The Counter-Party will also be entitled to recover their costs associated with financing and constructing the Plant and certain other project expenses once the Joint Venture starts generating revenues, prior to UAC being entitled to its pro-rata share of revenues from the Joint Venture.
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So with revenues to SOP starting in over 6.5 years away from now, expect a lot of share dilution as the company issues shares to pay for expenses to stay alive.

[baystock1]

I am talking about revenues from production from the manufacturing plant and not the revenues already received from signing the JV. Also the 6 year old report showed the capex to be $458 million, which means its probably well over $600 millin now due to inflation.