for more information about stanelco click on the links.

driver's research page link
http://www.moneyam.com/InvestorsRoom/posts.php?tid=7681#lastread
website link
http://www.stanelco.co.uk/index.htm

I was/am curious as to why the two trading statements so close together:

17/08/06: Running out of cash; looking at options; 2 letters of intent which should lead to contracts.

08/09/06: Running out of cash; looking at options; contracts being finalised.

maestro is the original conspiracy theorist. he believes the US never went to the moon and the US blew up the twin towers themselves.

The Welsh got to the moon first but there were no Pot Noodle deposits there, that's why we came back and started mining for noodles in the valleys, isn't it?
Garyble, thanks for the info, it is actually a bit clearer now!
kim

Sphere says Stanelco no longer plans to license Biotec IP to US Starpol resin JV
AFX


LONDON (AFX) - Stanelco PLC is no longer planning to license Biotec GmbH intellectual property to its planned US joint venture for the compounding of Starpol resin, according to a statement from Sphere SA, which is Stanelco's joint venture partner in German biodegradable compound maker Biotec.

This follows discussions during the last two weeks between Stanelco and Sphere.

Stanelco has signed letters of intent with two parties over Starpol resin for the US market. Starpol is a biodegradable packaging material.

So tell me is this good news - have SEO been negotiating themselves out of this JV so that they can replaace it with another order/deal ???

Dunno.
Any ideas, anyone??
I'm at sea with this one. My first reaction was that the Biotec JV must have been interfering with the US negotiations, I just cannot see how.
Alan

Heres a thought from left field.
Could it be SEO are planning to dump their holding in Biotec, to raise cash??
Could it also be that someone got word of that yesterday afternoon, placed a silly large order on the books and that caused the extension?
Just a thought.
Alan

Still half asleep, but my instict tells me that Biotec is now the lifeblood of SEO, so to sell them would leave the company with a much smaller portfolio. I am half asllep though!
Kim

Looks like Sphere has blocked SEO's plans! I interpret this news as a major blow. If SEO cannot license the production of Starpol, their only option would be to produce it themselves!

I can't see SEO willingly dumping Biotec as Starpol is the money-spinner. Could be that Sphere have been very shrewd and ruthless, not only wanting a secure, "cheap" supply of their raw materials but also, knowing SEO has its back against the wall, now applying the squeeze to acquire Biotec outright.

Well the RNS is very clear in what it states, but what the hell does it imply.

To my mind it could be good or bad news. Typical SEO PR. Presumably they will give an explanation later today (we can but hope).
The clue will be the movement within the first few mins of the market opening.
No doubt those who understand these things with far greater knowledge than us, will be trading like mad. Also will be interesting to see the opening price. A day to keep your eye on the MMs.

Editing my earlier post as I dont want to depress anyone! But I will say it was gloomy and I am changing my stance to a rather less optimistic one, to say the least, after this latest news.

First strike to the buyers. MM's seem to be scratching their heads as well as their balls this morning!
kim

It's not an RNS - it's an AFX news agency story, seemingly originating from Sphere rather than SEO. My guess is Spehere have said - Oi, you can't licence our joint IP without our permission, which we refuse.

This may be the major cause of the delay in turning the LOI's into contract.

What a screw up in negotiating the sale of 50% of Biotec to Sphere without keeping a free control over their own uses - if that is the case.

Only guessing. Whatever, sounds like major bad news to me.

Perhaps this will trigger a proper RNS - kill or cure - frokm SEO itself today.

sd

Stockdog,

Re AFX not RNS, my error. Was in a rush so just concentrated on the content.

SD,
SEO have a golden share in Biotec. Whenever there is a dispute SEO have the final say. My guess is that the companys they are negotiating with want to use natureworks for the starch resin. Thats just my guess and I hope its cleared up soon.
Alan

Only guessing as we all are. But why would Sphere refuse permission, or stop SEO from licencing the product when if licensed with high volume sales it would generate a great amount of cash for both.

Just another silly guess - maybe Sphere have said they want to use their manufacturing capacity to make Starpol for the US market - do they have such capcity. I guess being a manufacturing company, they could tool up as soon as any JV in US.

Thinking of selling my entire holding and sticking in pin in the racing gazette - I have more in depth knowledge of those probabilties than SEO just at the moment!

sd

Just re-read it.
No longer plans to license Biotec IP to its JV partners in the US.
Biotec has many items in its IP portfolio. Perhaps the original agreement with Sphere said that SEO must license all the IP or none at all, the US JV partners are not willing to pay for the entire range and stalled negotiations, SEO have gone back to Sphere and said we are not going to license the other stuff, Sphere have kicked off, SEO have said tough, we've got the casting vote.
My point is that is does not say Starpol resin is not going to be licensed.
Still lost.
Alan

Anyone clarify.
Acording to my records, SEO several months ago stated they intended to jointly license with a limited number of US companies.
Could it be that Sphere have pushed SEO too hard, so SEO have withdrawn the proposed deal and will carry on the licencing with the others.
Anyone know how many such deals were completed. I may have missed something obvious with all the stuff put out over the last year.
I for one am going to E Mail SEO for clarification. Suggest we all inundate company with E Mails demanding such.

It seems very strange that Sphere should make an announcement of what Stanelco are or are not doing. Why should they make the announcement and not SEO?

Isn't Biotec IP crucial for Starpol to go ahead? If so SEO would appear to be a dead duck. Lots of scenarios, but what about this one.

SEO are not going to license the IP in its planned US JV, but Sphere are.

Could it be that the US JV has stumbled because of SEO's precarious financial position and so the licensing and deal will be done by Sphere, who are financially secure?

Another (darker) scenario is that Sphere are taking advantage of SEO's financial position and are positioning to pick up SEO's share in Biotec at a bargain price!

It's not an announcement - it's a news story!