Right in front of noses, page-89

Hi dex,

I am really only interested in the Parchem Construction Supplies part of Parchem's over all business and even more about Parchem's Construction Products sector, which is represented by FOSROC (an international leader in delivering constructionsolutions for building construction and infrastructure projects). However, even AVISTA are somewhat concrete related (expoxy coating system for driveways, garage floors etc.) 

Go to the Parchem home page (https://www.parchem.com.au/) and click on: "about us home" for Parchem Construction Supplies, "FOSROC"  for Parchem Construction Products and on AVISTA for Parchem's expoxy coating systems.

FOSROC have terrific contacts at the highest level, both in the private and government sectors, which will be crucial when it comes to tendering for upcoming major infrastructure and construction projects.

I see a terrific advantage for both engineers and contractors etc, in using EdenCrete for Shotcrete applications, which has become very evident after today's exciting news. This is something that FOSROC will no doubt include in their future presentations.

Yes I do think that there is the potential for some cannibalisation of some of Fosroc additives etc, as well as other Parchem products through EdenCrete etc.. Indeed through the use of EdenCrete, Avista expoxy coating system may no longer be required for driveways, garage floor etc, or at least less often. In addition, other future EDE CNT products such as coatings could steal market share from the Dulux Group (which includes Parchem). Having said this, one of the first things that GS would have done is to have Parchem sign an NDA, to protect EDE's IP Rights (Parchem will no doubt have done the same) during the initial exchanges of information between the two parties, as well as the subsequent supply of EdenCrete samples to Parchem in Australia for testing last year. In these NDA's it will have been very clear to both parties that EDE is active in ongoing research, not only with EdenCrete, but also with EdenPlast, coatings, rubber, steel, batteries etc. i.e. EDE is active on wide variety of fronts that could potentially impact both the Dulux Group and Parchem's market share's in the future. I am sure, however, that before the final distribution agreement was signed, all parties were very well aware of the cannibalisation possibilities.

With regard to the control of pricing etc., I am sure that GS has taken this all into consideration (GS has over 40 years of experience in commercial and corporate law) and that EdenCrete is being sold at an agreed price that fits in with original EdenCrete pricing and sales strategy, whilst at the same time being extremely profitable for both Eden and Parchem. Failure to do so would have been very foolhardy. 

Finally, I am sure that GS and the EDE will have retained a high degree of overall control over the commercial roll-out of EdenCrete in Australia, including performance clauses.

Best regards,

Mark