News: AWE to form JV for Geothermal program , page-2

I cant understand what the strategy is here as GRK before the announcement had a market cap of $2M and after the announcement it has a Market cap of $4M

AWE could have bought GRK for $2M last week !!!
and got all of their GEPs and so on

Now they seem to be venturing into the deep dark hole of geothermal money wasting. Have they not been paying attention to the ORG (Origin Energy) experience in the geothermal space with GDY.

Reading the announcement the LEED funding of $5.4M is on a 1 for 3 basis so doesnt that mean that $16.2M has to be raised in order to get the $5.4M ? So I presume that it will be committing AWE to raise this money as GRK with its share price of $0.002 wont have a hope ? Does any ERP funding count to the $16.2M total or will that have conditions as well ?

AWE contributes the money for two wells - less any LEED and ERP funding and gets only 50% and also gives GRK $250k as well. How does that make any sense ? For $2M AWE could have bought GRK last week and had 100%.

Instead of wasting shareholder money in this way why not give us a dividend !


Cheers