Dear John,

Thanks for posting here.

I would agree with you 110%: nobody would want to do a priv. placement at these levels for sure…nor when such large amounts of cash are expected soon.

For clarity let me review some details of the transaction which is no more than a summary of recent press releases by either DROSRITE™ International (“DI”) or Pyro:

 It is DI that has the relationship with the client, and it is DI that is supplying the equipment to the client.  The equipment is US made. DI is also the beneficiary of the Letter of Credit you refer to.  DI has an exclusive relationship with Pyro regarding the DROSRITE™ process which enables them to act as they have.

To answer your specific questions with respect to the letter of credit and your concern that there may be an obligation to supply product before money is received, I would refer you to DI’s press release dated November 26th for more details on that (https://www.globenewswire.com/news-release/2019/11/26/1952867/0/en/Drosrite-International-LLC-Incorporates-Letter-of-Credit-into-US-17M-Contract-with-Radian-Oil-Gas-Services-Company-Provides-Update.html) .

In short, the L/C itself does not impose any further obligations on DI to perform beyond what is in the contract.  The L/C is only marrying up milestone payments that have already been negotiated to paperwork that a bank can act upon.  Where such cannot be done easily accommodations will be made...but increasing responsibilities will not be one of them. The fact that this L/C de-risks the project to DI has been reviewed in recent press releases as well.

Hope that helps

Peter