RE: Discussion4 Aug 2018 13:42
Obviously I’m delusional and naive for trying to point out the fact that there could be many a valid reason for “the selling” of late and also I’m clearly delusional in thinking that 2.5m shares sold in a short period of time wouldn’t have an detrimental impact on the SP? Sorry I forgot that would naturally make the price rise how silly of me.
I’m only putting out my thoughts as much as anyone else but at least I’m putting something of substance and reason behind them.
Your reason for selling out had your reasoning behind it and that’s fair enough from your position, however I’ve not had a personal dig at you so no need to have one at me.
Also the comment on “I’m topping up here” whilst posting on another channel “I’m thinking of selling there to buy here” wasn’t directed at you either, just the typical stuff posted on theses boards.
I’ve no problem with real critical debate, welcome it in fact.
Diversion is as far as I’m aware a totally separate company, but obviously the directors are linked.
It owns 25% of the DTU patents, as such I’d expect 25% of the royalties to go to diversion and 75% of royalties to go to Highlands. At no point in the prospectus does it say we own 100% it is all over the place as 75%.
Also at no point does it state anything about Diversion and gas sales etc as there is no need. All of the assets of Highlands Natural Resources belongs to Highlnds Natural Resources. It has subsidiaries such as Highlands Montana Corporation, which are wholly owned subsidiaries of Highlands Natural Resources.
In short. Everything we own as HNR we own, that includes the very publicly stated 75% of DTU patents and therefore royalties associated with it.
Under no circumstances could diversion have any claim to any Nitrogen sales as they do not own the Nitrogen play it is owned by Highlands.
So back to the original point.
Is Diversion paying for any testing. - No it doesn’t look like it.
Will Diversion get a free ride of 25% of the Royalties from DTU - Absolutely of the patented process, it isn’t a license to sell gas it’s a royalty ownership.
Does that mean they get a free ride - Yes. We HNR are paying for the DTU tests but we will get 75% of the royalties and naturally any gas sales which we own.
Is that similar to West Denver. - Yes someone else will pay for the work, and we will get a %.
Is that in itself dodgy - No.
So if that’s viewed as Ninja Turtle Acid and you don’t want to invest, so be it, it’s my understanding of how royalties work and how the companies assets are owned by us as HNR shareholders as opposed to owners of a 25% Royalty interest on a patent, that is owned by Diversion..