Dear All,

I wanted to share with you a private question that was asked of me, and my response.

The question was as follows (my response follows):

Greetings,

I hate to ask what I think is already obvious but seems to be a point of contention and the source of what is possibly a campaign of willful misinformation surrounding the contract between Drosrite International and Radian.

It has been portrayed by some that this particular paragraph from the Nov 26th news release intended to clarify the delay somehow intentionally sidesteps whether or not the contract announced on November 13th was in fact signed by all parties (or if the contract was not signed pending inclusion of the L/C) and is legally binding. I will highlight what I can only assume are the sections that might appear to be sidestepping though I personally think it pretty obvious that the final signature of the legally binding contract occurred on Nov 13th: 

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At the time of our October 9th press release we did expect to sign by the end of the month, and all things were aligned to do just that. As one might expect though, any small item has the potential (given the different time zones, need to translate documents etc.) to magnify any delay. Add to that the challenge of rearranging schedules for a formal signing, and you will find that a two (2) week delay for a ~US$17M Contract to be entirely reasonable and, I would even suggest, should be expected by any reasonable person with a cursory knowledge of such things.

Once the Contract was signed, one would have expected that the down payment would have been wired within ten (10) days, which would have seen the funds arrive sometime during the week of November 18th. Towards the end of the previous week we were asked if we could accommodate payment by Letter of Credit as that is a more common method of payment in the region. We agreed, which is the subject of this press release.

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I understand it may be confusing that I seek to clarify this in clear and exact terms, all I can say is that I believe the potential for ambiguity is being used to the detriment of your company and your partners.

I thank you kindly for your time and consideration,

Best Regards,

XXXXXXXXX

I answered this as follows:

Dear XXXX

Far be it for me to comment on behalf of Drosrite International, but I think Mark that you are correct:

The Nov 13th Press release headlines: Drosrite International LLC Signs US$17M Contract with Radian Oil & Gas Services Company. In my opinion you cannot get clearer than that.

In the first paragraph it is repeated that: “…it has signed a 20 years contract consisting of…” without any conditions.

It seems that subsequent to signing it was decided that it would be better to use an L/C as a way to send funds…all explained in the Nov 26th Press Release.

In that very same Press release it states, as you so aptly pointed out: “…Once the Contract was signed, one would have expected that…”.  Please note that “...was signed…” is past tense and I would suggest for a good reason…it was signed already.

I can only assume why people would create ambiguity when there isn’t any, but I will spare you such agony.

Have a great weekend.

Peter

Hope that helps someone here as well,

Peter