I have yet to ever see a Memorandum of Understanding EVER turn into anything more than the electronic bits the acronym was written from. MOU is a special acronym used for wishfu- thinking companies to either lie to shareholders or prolong the company's delusion of eventual success. Laughable.
Interestingly, the MOU states the contributions of Moller Inc itself, along with the JV, but never details the contributions of Athena in any partnership.
Also, it appears that even if they were successful at raising funds (JV raises it & not Athena) and building these aircraft for sale, that Moller would only be making $$$ off of the JV for 10 years MAX. I'm guessing that it's only for China sales, as I wouldn't think the JV would have exclusive worldwide sales.
One positive from the MOU, is that the Autovolantor isn't included in their production plans. Same goes for the LS100. Honestly, all of the models are silly to a degree, but that Autovolantor takes the cake in stupidity.
I'll continue to keep my eye on this from a trading perspective, but I'm not expecting much. We all remember how that last MOU turned out over a year ago. And the test flight that never happened. And the failed IPO for Freedom Motors. And the failed production of the Neuera a few years back that was supposedly ready to finish a dozen (or was it two?) for sale. And the failed production DECADES ago of the Neuera that was supposedly ready to go into production.
Actually, I think the ownership stake you are referring to "provide MI with 25% fixed ownership in the JV for a period of 10 years." means it's non-dilutive. I read it 10 times before I came to that conclusion as opposed to MI looses it's 25". That way, the JV can issue all the shares it wants to but it won't screw MI shareholder for at least 10yrs.
All they really did was determine the structure of the JV so they could go out and look for investors who will probably still require MI to tweak the T's&C's. Much ado about nothing until these purported hedge funds and/or investors put up some coin.
The more interesting aspect of the MOU is the "purchase a 35% ownership in MI". Will these be new shares and at what price? Will the investment dilute existing shareholders and to what degree? If Dr. Moller owns over 50% of the company and keeps all of his, that only leaves the rest of us to share 15%. These private placement deals usually are a discount to the market and usually have additional perks.
And to think, Jeff being a sophisticated investor, could have bought in well below $.46 with a direct, private placement and probably would have gotten warrants, etc. That money would have actually done MI some good as opposed to just trading hands with the various traders and small investors.
Lastly, if you traded the last MOU, you made money, too. At this point, it's suggests holding some shares just in case (ie. lottery ticket) and trade the volatility.
Anyway, there are lots of unanswered questions and time will tell as it always has, but I won't hold my breath.
if this were just MLER, hands down i would agree... but the litmus test is really on Athena - not MLER. I have been researching eAthena and found that John Gong appears to be a legitimate businessman. Bottom line is that Gong is the one on the hook at the moment for this MOU. His credibility seems to be on solid ground. I sold my position in the 40s - waiting a little more to possibly double my position. I'm not planning on seeing these things fly... more interested in making a dollar here. I am on the side that Gong will come through with some kind of agreement... probably not the initial amounts... but that should be enough to push this up to a dollar or more just based on the exposure.
While it would be great to see this at a dollar, the greater likelihood is back to 10 - 15 cents until something really happens. Based upon other MOU's, this one means nothing. As of today, it looks like we are on the way back down. I took profits near 50 cents with 90% of my position so I'll wait for the return to 10 - 15 cents. If I'm wrong and it goes to the moon that's fine, too, as I still have a sufficient number of shares to make some big money.