REGI US's parent company, Reg Technologies has completed a deal with Zhongline Hangke New Energy which gives Reg $1,188,000 for 9.900,000 shares. There is a press release on the Reg Tech website. The Zhongling website is unfortunately in Chinese. I believe this deal will have fairly dramatic consequences for the development of the engine, and have expressed this in a longer message on the REGRF board.
So this is about developing the engine for Asia, which is the REGRF domain, what does that mean for RGUS which has the USA rights? I am surprised this is not being developed by a Western company, after all the track record on Chinese tech company deals is real sketchy, and can't get a reading on this one.ra
Anybody have the inside track?
It beats the heck out of me how people have beat me up for years stating development and testing isn't going to cost Reg any money. Now out of no where they are selling 20% of the Co. complete "assembly and testing". Where did I miss the news that yes another one has walked away and separated themselves from Reg.?
Hi Star, REGRF and RGUS are bound together, and what is good for one is good for the other. The immediate benefit for RGUS is that the engine testing will be completed much faster with the million dollars, and John Robertson will no longer be selling shares to get the money to keep the companies afloat. And, the credibility that comes from having a company invest a million dollars will accrue to RGUS as well as REGRF.
I am not as concerned about the "Chinese" element as you are. Hong Kong companies are pretty independent of the Chinese government, and this is a company with worldwide dealings and an office in Toronto. Anyway, Zhongling is buying an interest in Reg, Reg is not buying an interest in Zhongling. Zhongling is not buying any rights to manufacture or market the Rand Cam engine, although that may come in the future. They are investing in REGRF, and there is no mechanism here for them to financially profit from this without shares of REGRF going up.
Anyway, the important thing here is the $1,188,000, regardless of where it came from. It is real money, and the engine will now be completed and tested without these horrendous delays. If it leads to further development and deals, as hoped, that is a plus.