Role of CCC
Some time ago my (vary naive) understanding was that CCC are becoming partners, holding some 15% of company shares, in exchange for $49mil payable after delivering of DA. That sounds very logical. One will invest some money in a small, promising company, take some risks, and for exchange get certain amount of shares, like all of us.
(RCA are taking risk, giving away one of the most beautiful spots in Oman, investing $19mil, and consequently holding 25% of shares)
Tell me if I was wrong (it will not be my first time), but CCC will invest those $49mil only, and only , when 'Syndicated Financing Agreement' is organised (so there is absolutely no risk for them), and even worse, when the 'Financing Agreement' and Contract is signed so they get exclusivity on a very lucrative $2.5bn contract!
(I am quite sure there are plenty of contractors who will easily give away those $49mil in exchange for $2.5bn contract, never mind the bonus 15% of shares in company)
As a direct consequence of that, management is getting into my already mentioned Catch 22 situation, struggling to raise some finance or stretch very limited budget ($546,000) to get some absolutely minimal requirements (presumably updated master plan with updated figures, and estate agents appraisals) in order to get into serious discussions with banks, in order to sign Syndicated Financing Agreement, in order to get Financing Agreement, in order to sign contract with CCC in order to get those crucial $70mil needed to start with more serious work.
Omagine are risking everything and CCC absolutely nothing!
From my amateurish point of view, CCC are getting extremely good deal, and should really help more in this difficult time if they want to get anything from this development.
I still have an absolute faith in Management, and hoping they will not be forced to sell more shares in order to get on with 'Initial Design Work' as soon as possible ('fast-track development'). Otherwise, additional 12 moths of waiting will hugely jeopardise chances to get the first stage of work ('MBO'), completed on time.
