Fragrant and aromatic, page-43

Hi Dex,

I am not an industry expert, but I do know a bit about the US markets EDE, accordingly EdenCrete, are chasing.

According to my conversations and research, the approach is as follows:

Continue to go after the smallish size 24 hour mix/Class B repair/maintenance applications (mostly around US$100,000 or less). This is the low hanging fruit which EdenCrete already have approval for from the GDOT and other state DOT's, as well as the FHWA (the approval from the FHWA is key because they finance 80% of these types of application projects).

Now that EdenCrete has been used in several of these aforementioned smallish size 24 hour mix/Class B applications, they now can move to the higher fruit/level and tender for the far larger 24 hour mix/Class B application jobs (from ca. US$250,000 to over US$1 million), which BTW EdenCrete is also already approved for by the GDOT, the other state DOT's, as well as the FHWA, which includes the highway reconstruction market for contractors under DOT tenders. This is where I believe EdenCrete is at the moment. According to my research, EdenCrete is on the verge of receiving a least one major contract from the GDOT for a FHWA funded repair project. This project was also mentioned in the last quarterly, although the exact size of this project is not yet known. Examples of some of the major projects that Eden Crete could be qualified for can be found under the following link:

http://www.dot.ga.gov/InvestSmart/Documents/SSTP/AttachmentC-SB200.pdf

The Holy Grail i.e. Class A/Class 1 applications (essentially all new roads and bridges, including bridge repairs). The Class A/Class 1 testing has already been undertaken, in as far as that EdenCrete has been laid on a large section of road for just over 12 months, however, this section of road has been closed to traffic the entire time. To test this section properly this road now has to undergo up to 12 months of "traffic" testing. Having said this, the GDOT and/or the FHWA could decide after a shorter period of time to approve EdenCrete for Class A/Class 1 applications. This approval will be huge as the Class A/Class 1 applications market is 10 times the size of the 24 hour mix/Class B applications market.

EdenCrete is already well advanced in its attempts to receive a wide variety of infrastructure construction jobs with contractors all over the US for 24 hour mix/Class B applications. It goes without saying that as soon as they receive approval for Class A/Class 1 applications the range of infrastructure construction projects will be much greater. The major bonus is that the huge amount of leg work that the EdenCrete sales team has already done with contractors all over the US will automatically bear immediate fruit as soon as the approval for the Class A/Class 1 applications is granted.

One extra thing to be noted at this time is the precast bridge beam market, which EdenCrete is already participating in with Valley. It would appear that Valley undertook this testing themselves and received approval from the TxDOT to install their beams with EdenCrete throughout Texas. This is a very lucrative market that can only grow for EdenCrete. Additionally, there are a wide range of other precast applications for which EdenCrete should be eminently suitable.

Whilst I agree that an infrastructure win is a win, whether in the US, or in Australia, IMHO it will be the significant wins over the next few weeks and months, primarily in Georgia, but also soon in Texas and Colorado, with federal funding through the FHWA, that will be the icebreaker in the US and then flow on to Australia etc. (definitely not the other way around).

Cheers!

MB


Please Note: Readers must do their own research before making any investment decisions. All posts from me are my own personal opinion und are not intended as a recommendation to buy, sell or hold.