Ann: UTR Signs JV Production & Sales Agreement, page-20

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svenf

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12/06/18

21:09

Post #: 33664201
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Originally posted by rjbr ↑

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.

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Hi rjbr,
thank you for your feedback.
Agree on the funding, it has to come from somewhere and their cash in the bank seems not to be enough.
Just wondering if we are seeing a CR come - and if so- at what shareprice that would be as existing SP is 2.2/2.3c only.
May be this issue can be solved by the company going for a bond loan of some sort, therefore avoiding share dilution.
UTR Price at posting: 2.2¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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Ann: UTR Signs JV Production & Sales Agreement, page-20

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