Ann: UTR Signs JV Production & Sales Agreement, page-13

It is a joint venture, not a charity gift from PTG. Looking at this announcement I think it is not too shabby. Below is my take on this:

PROS:

• Access to PT Garda clientelle in Indonesia and ASEAN
• Access to Trinitan Group, a global player in energy storage solutions
• UTR will hold 70% interest in the JV. 70% of any profit will go to UTR
• PTG will contribute its resources, facilities, labour to run the production line and any post production cost
• PTG to undertake marketing and selling to existing contracted clients
• UTR will have 2 out of the 3 BOD of the JV. They have the controlling interest.
• UTR will retain the IP developed as part of the JV
• UTR gets to have a production facility

CONS:

• UTR will be required to pay 3M USD to establish a new production facility, BUT we get to have a production facility.

Regardless of where the money would come from, UTR will need need to raise money for a production facility somewhere down the line. Note that this venture will only happen if firm orders of at least 5M USD can be secured, in which case you would hope the company has done the maths and they know there will be a profit in the end.

Thats my interpretation of this, all imo.