House Standing Committee on Primary Industries - Brisbane, QLD (part 2 of 2)
28 September 2026
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House Standing Committee on Primary Industries Australian Parliament
00:00 - 00:51
Speaker 7
In the context of manufacturing, where you're really just making a widget, in our case we're making a bespoke advanced material. But the point is we're not, you know, exhuming anything out of the ground to create that value. That's being done by our partners, Rio Tinto and Incitec in this case. And so what we did was we invited them to take an equity position in the company. We are a listed organization.
And so they bought fifty thousand dollars worth of shares, and in return we gave them half a million options in the business, which was a really unique way to solve that economic participation. It gave them upside without making the commitment, because we recognized that it's community money, as they referred to it. And it was just a really fantastic deal. They participate obviously with us as and when we work together, and so that's how we did that.
00:51 - 00:58
Speaker 5
And presumably as your company continues to become more and more profitable and does more things, they have those options.
00:58 - 01:34
Speaker 7
Yeah, so the options are there when the strike price is in the money, as they call it. Then they've got the option to then either sell, they could sell the option as it is and gain the intrinsic value of that option, or they can decide to exercise that option, buy the stock at the trigger price and have an immediate upside available to them to either purchase more or do whatever they want with it as an investment. So that was a really neat solution to managing risk for them. But also they put a little bit of skin in the game, so to speak, up front with a small contribution for the initial placement that we gave them.
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