Tuesday, September 27, 2016

Rec Silicon may have messed up away the rights to the FBR technology – Today’s Business

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It is more than doubtful whether the Rec Silicon manages to cough up 169 million dollars to defend its holding in the chinese joint. It means that Rec Silicon can lose the rights to the market-leading FBR technology to the chinese.

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Rec Silicon’s shares have halved in value in the year. Silisiumprisen has collapsed and the stock market fear a verdiødeleggende kriseemisjon.

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If that isn’t enough. The investment firm Carnegie believes that Rec Silicon is in danger of losing the rights to its own FBR technology. FBR stands for ” fluidized bed reactor and is a market-leading technology, Rec has developed for production of superrent silicon. Technology has for years provided Rec Silicon is a leading cost position, but now, the company is in danger of losing technology to the chinese.

“the Company states that without a solution on the handelskrigen, as this will make the Rec Silicon unable to pay their remaining installments, the equity ratio of the chinese jointventure company will be diluted accordingly. To put it another way, the company has lost control of the FBR technology since the state-owned, the chinese partner will own the majority of shares in the jointventure company,” writes Carnegie.

It was in February 2014 Rec Silicon heralding a cooperation with a chinese company to build a silicon factory in China. The new factory in China was estimated to cost 1.4 billion dollars. There is money Rec Silicon had not, and the solution was instead a fattigmannsløsning involving a joint venture with a chinese company and only limited investment obligations for the Rec. As part of the agreement was the rights to the FBR technology transferred to the chinese jointventure company.

Given a 50 per cent utilisation rate at the Moses Lake facility in the united STATES and a silisiumpris at 14 dollars per pound next year, estimates the Carnegie that Rec Silicon will be short between 120 and 140 million dollars next year. It is prior to the scheduled payment of 169 million dollars to defend its ownership in the chinese jointventure company.

he who does not know the smell of the issue here, need to take a trip to the doctor to get examined the sense of smell.

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“We remain sellers of Rec Silicon and reducing our price target on the new information. Investors can risk a new egenkapitalemisjon, not only to participate in the chinese jointventure company, but in order to keep the company afloat if the current market conditions should persist,” writes Carnegie.

also Read:

Hermanrud properly hæla in Rec Silicon

the Generator dumped the Rec before Hermanrud-notice

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