Bernard, a few times, said that he did not want to negotiate an off take agreement too early in the game because it would give the buyers too much leverage. He preferred advancing / proving the technology to a point where there would be several potential clients wanting the product, therefore giving HPQ the stronger negotiating ground. Also, he mentioned the fact that QRR is a flexible size reactor as opposed to a large smelter, plus designing production lines that could make the product to the client’s specifications and quantity will allow them to “ring fence” a production line, reserve it’s production to that specific client. My understanding is, through properly negotiated off take agreements, the clients will end up paying for most of the production lines installation costs to get the exclusivity of buying what will be produced by that production line.

Another way of financing, that was also hinted, is selling one division, for instance the fume silica division, and use the proceeds of that sale to finance other projects.

In all cases, and considering that Bernard holds a large portion of the company’s shares, I expect the dilution to be kept to as low as possible.