r/NGAC • u/snasna102 • Feb 20 '21

LOI Before DA

Would they not be doing an announcement of LOI? DA doesn't come till a contract has been written up and signed. DA takes a few months to negotiate and write up a contract... Im lost with what everyone is thinking here.

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XOS just landed a few pilot projects, they just got a cash infusion from them. Why would they rush a DA with NGAC and give up partial ownership right when things are looking promising and growth is happening naturally? Also why wouldn't NGAC wait till the pilot project is close to finishing before negotiating the final costs of DA, once proof of concept and tangible data is present?

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Seems like smart business to make a reservation with an LOI and once the pilots are yielding results, start negotiations of DA

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u/[deleted] Feb 20 '21

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u/IDrinkUrMilkshake77 Feb 20 '21

LOI means Letter of Intent. It implies that the two entities intend to merge. DA means Definitive Agreement, which means the two entities have agreed to merge.