The website of news agency «RZD-Partner» has released the news that Unitsky String Technologies Inc. is planning to build a 130-km string track between two UAE cities: Sharjah and Khor Fakkan.
There are, however, a few inaccuracies that journalists have made regarding the company's future projects and the financing of the technology. Let's look at these inaccuracies one by one.
1. The authors state that it will cost $230 to $580 million to build the track between Sharjah and Khor Fakkan. This is not true. In fact, between $230 million and $580 million is planned to be invested in a 20-km track project to test the high-speed string transport, whereas the cost of the track between Sharjah and Khor Fakkan is not yet known. This project is currently under review.
2. The journalists also write that «the SkyWay project is marketed by two blocks of companies». The first company is an engineering one. It includes «String Technologies, CJSC.» based in Belarus. However, according to the authors, another company - Unitsky String Technologies. Inc. - is engaged in the project development abroad. The second block is supposedly an investment one. Skyway Capital and Skyway Invest Group are mentioned in connection with that. Here is what should be noted here:
‒After the rebranding, string transport company developer Unitsky String Technologies Inc. is no longer using the SkyWay brand to position the technology in the market.
‒ Also, in spring 2020, SKY WAY CAPITAL (in the news it is named Skyway Capital) has been renamed to Sky World Community; while Skyway Invest Group has not cooperated with the string transportation project since February 2020.
‒ It is a mistake to combine string transport company developer Unitsky String Technologies Inc. and crowdfunding platform Sky World Community, which is attracting investment for the technology development. They are independent partner companies.
‒ CJSC «String Technologies» is the Russian-language name of Unitsky String Technologies Inc. before the rebranding. We are, therefore, talking about the same organisation. It is worth noting that the development of the string transport in the UAE is being handled by another company, which is not mentioned in the news.
3. The journalists also write that the date of the project's entering IPO is not known. On the one hand, that is true. But on the other hand, we do know the main conditions after which the company can go public. There are two such conditions:
‒ Completion of the development stage 15.
‒ Earning profits by the company from targeted projects.
The first condition can be realized after full-fledged testing and certification of the high-speed transport. As a reminder: Unitsky String Technologies Inc. is currently in the process of finding a site for a suitable test track.
The second condition will be implemented once the targeted projects have been successfully launched. In particular, according to the company's founder Anatoli Unitsky, there are plans to sign at least three contracts for the construction of targeted projects by the end of 2021. And by the end of 2022 the number of projects may be increased to 10.
It is important to bear in mind that if these conditions are met, the company must also show solid financial results for several years before filing for an IPO. The pre-IPO process itself takes 6 to 9 months.
For reference: «RZD-Partner» is a magazine published since 1998, specializing in railway freight transportation, and covering the entire transport industry. Regular news on these topics is published on the edition's news agency website.