Read the Independent Expert's Report over the weekend.
I'm pretty exited by the most recent string of announcements. Major show of support for management + strategic nature of the technology as well as de-risks cash-flow issues in the short to medium term (1-4 years). All positives, which I don't think the market have been fully recognised in the market (maybe we have to wait until after the AGM vote on 30/11 for the sp to start moving again?).
CNX has a proven technology and now has a new commitment from a major shareholder who is bank-rolling expansion into China.
IMO further sp upside from any announcement by QLD government on Australian project(s) OR from other similar JV announcements outside of China.
Highlights:
Kam Lung shareholding in CNX will increase to 19.99%, and as far as I can see has the ability to increase up to ~32% if he takes up in full his July 2016 options at 6 cents each (and no other shareholders do).
The Company has now welcomed Kam Lung's owner Zhuang, Hai Hui the Board of Directors.
A 70/30 JV to be formed between Kam Lung Affiliate and CNX in China, capitalised by Kam Lung to the tune of AU$40m (CNX capitalisation ~AU$25m).
CNX to be Exclusive Service Provider and will provide necessary technical and design services support, supervision and training for all JV projects on a cost plus basis under an exclusive technical services agreement with the joint venture (read: ongoing cash flow).
In addition to capital, Kam Lung brings invaluable business and government contacts in China.
But wait, there is more...
Cheers
mmmmgus
CNX Price at posting:
1.7¢ Sentiment: None Disclosure: Held