Chapter 68. The Huaan Group's Rogue (3)

I explained.

"That place is Grantsville in Utah. The slope is 3 degrees and the length is 2 miles. Just by pushing a car, it can reach about 60 miles per hour, which is approximately 96 kilometers per hour."

This time, I showed a new video.

In the same location, an SUV was driving on the road.

"This was filmed by one of our employees. What do you think? It looks like it's driving, right? In reality, it was just rolled with the gear in neutral. Isn't the movement exactly the same as in the previous video?"

After a moment of disbelief, Huminwu said as if something had occurred to him.

"Then what about the stage? It can't be that it's also a downhill slope, right?"

"Ah! For that, we connected wires under the stage to a truck to drive a motor. You can think of it as a kind of wired RC car."

I showed him a photo captured from the event video.

Seeing the wires protruding from under the truck, he let out a hollow laugh.

"Ha... Ha..."

You might think this is just nonsense. I felt the same way as I was saying it.

Who would have imagined that a company worth $40 billion would pull such a trick at a public event?

This time, I showed a photo.

"This is the hydrogen car factory they claim to be building in Mississippi. They announced it a year ago, but the foundation work hasn't even started yet. When do they plan to build the factory and when do they plan to mass-produce hydrogen cars?"

"That part is with GM..."

"Ah, collaboration with GM?"

GM agreed to acquire 12% of Thomas's shares.

Instead of a cash payment, they would provide parts like electric batteries and jointly develop and produce hydrogen trucks.

After the MOU announcement, Thomas's stock price rose by more than 50%.

"As you know, an MOU has no binding power. GM hasn't invested a single penny in Thomas yet. If any issues arise during the process, they can pull out at any time."

In fact, after the fraud was exposed, GM completely withdrew its plan to acquire shares. In the end, only the Huaan Group was left holding the bag.

"CEO Brad Button sold out the Huaan Group during the MOU signing process with GM. When GM said they would conduct due diligence, he loudly claimed that if they didn't have the technology, how could they collaborate with the Huaan Group? He probably said the same thing during the negotiations with Huaan Energy. If they didn't have the technology, would GM acquire shares? Am I wrong?"

"..."

Seeing that he couldn't speak, it seemed he had already heard the same thing.

This is how you deceive the masses. Ironically, the deceived become the guarantors of the fraud.

"Really, Thomas doesn't have the technology to make hydrogen cars?"

"Yes."

Actually, making electric cars isn't that difficult. Because the structure is simple, anyone can easily make one by buying batteries and motors.

That's why small startups can also release electric cars.

However, hydrogen cars are more complex than electric cars and can't be easily made by just anyone.

A fuel cell is a kind of small generator.

Unlike electric cars, which only need batteries, hydrogen cars require high-pressure hydrogen tanks and fuel cell stacks.

Additionally, a radiator is needed to reduce the heat generated during the electricity generation process.

Given the high level of technology required, only three companies worldwide have successfully mass-produced hydrogen cars.

One of them is Daeyeon Motors in South Korea.

"Thomas claimed they successfully developed the core components of hydrogen cars, the fuel cell stack and high-pressure hydrogen tank. Yet, they repeatedly proposed collaboration with Daeyeon Motors. The infrastructure can be handled by the Huaan Group, and production by GM. So, why are they so eager to collaborate with Daeyeon Motors?"

"..."

Lies are always hidden within the truth.

Surprisingly, Thomas Motors really did plan to make hydrogen cars. Although they lack the technology, they can buy anything with money.

Fortunately, thanks to the rosy prospects they presented, Thomas Motors had enough capital.

CEO Brad Button must have had a plan.

He intended to get the core technology from Daeyeon Motors, production from GM, and hydrogen infrastructure from the Huaan Group.

If Daeyeon Motors had accepted the proposal, they might have turned the lie into reality.

However, despite multiple attempts, Daeyeon Motors rejected Thomas's proposal, and Thomas failed to secure the core technology for hydrogen cars.

That's why they haven't been able to produce hydrogen trucks to this day.

"By the way, the inverter and motor they claim to have developed themselves were actually bought from Germany's Carmen. You can verify this."

Unlike GM, which only signed an MOU, and Daeyeon Motors, which rejected collaboration, the Huaan Group is about to make a real investment.

If they start large-scale investments, it will be difficult to pull out.

I looked at Huminwu and said,

"There's a new car announcement planned for PureCell Day. If you don't believe me, take a close look at the T2 FCV they plan to unveil. I guarantee you won't even be able to inspect the interior, let alone see it drive."

He was silent for a long time.

His mind must be in turmoil, wondering whether to believe me or not.

After a while, he spoke with a determined expression.

"What's your purpose?"

"What purpose?"

"Why did you come all the way here to tell me this?"

Of course.

Do you think I would do this to save someone I don't even know? It's all for my own benefit.

"First, check if what I said is true. We can talk about the details later. Oh! It's best to delay the agreement as much as possible."

Having said what I needed to say, I placed my business card and stood up.

"Then I'll be on my way. I'll have a good drink."

* * *

Han Miru left as if she had said everything she needed to say.

Alone, Huminwu fell into deep thought.

Throughout the meeting, he had been seething with anger, but at some point, his head cooled down.

He remembered the words of Chairman Yoo Jae-ho.

"I don't know what you'll talk about, but it will definitely be helpful. It was for me."

He focused on the last part.

What did Chairman Yoo Jae-ho say to Han Miru?

"If things go well, my brother will take the credit, and if they don't, I'll take the blame?"

The former was something he had been worried about and had been paying attention to. But if what Han Miru said was true, it wasn't even a problem to worry about.

Thomas Motors is currently evaluated as a company with significant future value.

While Tesla has dominated the electric car market, everyone firmly believed that Thomas would dominate the hydrogen car market.

The expectation alone had already surpassed Ford's market capitalization, and it is now threatening GM's market capitalization.

"But what if it's all a fraud?"

Huminwu re-examined the materials Han Miru had left behind. Once he started to doubt, there were clearly many suspicious points.

The past actions of Brad Button were shocking, but the most shocking was that the hydrogen truck was rolled down a hill rather than driven.

"Why didn't anyone know this?"

If this report is true, what would happen? Who would be responsible for the wrong investment?

If the hydrogen infrastructure agreement falls through, the Huaan Group will have to completely re-plan their energy roadmap.

In fact, there are many reports pointing out Thomas's weaknesses. However, the same was true for Tesla in the past.

People always send both expectations and concerns to companies challenging new industries.

Tesla dispelled all concerns and opened the era of electric cars. Can Thomas do the same?

Until he came to the U.S., he believed it could happen. But now, he's not so sure.

No matter what, he needs to verify if what she said is true.

* * *

After finishing my work in Alabama, I immediately returned to San Francisco.

The employees who had been dispatched to various places had already returned and gathered in one place.

"How did it go?"

"I met with him successfully."

By now, his mind must be full of doubts.

"Do you think he will act as you want?"

"Of course. The more someone has, the more they fear losing it."

Huminwu was born into a wealthy family.

He wouldn't want to lose his status no matter what. To survive, he will act as I think.

I looked at David and the employees and said,

"I plan to make a big move at this PureCell Day."

"How much do you plan to invest?"

"First, we need to use all our assets."

Currently, Continu Capital has $107 million in cash.

To make a big move, we need to gather as much cash as possible.

I sold the Dongwoo Precision warrants I had.

The Dongwoo Precision corporate bonds I bought were BW (convertible bonds). At maturity, you can receive interest and principal, as well as new shares at a fixed price.

The price for receiving new shares was 12,000 won.

However, the stock price before the trading halt was 6,580 won. The warrants were essentially worthless.

After the acquisition of Yuseong Electronics and the lifting of the trading halt, the stock price soared to 35,000 won, more than five times higher.

By buying the warrants and receiving new shares, you could make a profit of 23,000 won per share. However, since you can't receive the shares immediately, they were traded at about 20% lower.

With the expectation that the stock price would rise further, the warrants sold well.

The profit from the sale was 22.6 billion won, approximately $20 million.

This is a bit short.

While thinking about how to get more money, I received a call from an unknown number.

"Hello."

[Is this Han Miru's phone?]

"Yes, it is. Who is this?"

[Hello, I'm Tyler Park, CEO of GTiger PE.]

I had never heard of the company or the name. However, the "PE" at the end suggested it was a private equity firm.

"What's this about?"

[I want to invest in your company.]

"How much?"

[100 million dollars.]

He didn't mention who referred him, and I didn't ask.

I didn't think he would really invest 100 million dollars.

Should I have asked for more?

"We will send the contract by email."

I immediately asked David to prepare the contract.

He was surprised to hear about the 100 million dollar investment.

"100 million dollars? Who is investing?"

"Someone I know."

It's a slush fund, so I can't reveal the name.

The deadline is two weeks. The fee is half the profit. I will take responsibility for any losses.

In reality, if I can't pay, that's it. Are you worried I might run away?

Of course, in that case, it won't be easy to have a good life.

The Yuseong Group not only dominates the economic sector but also the entire Korean society. If they decide to, they can easily bury someone socially.

Perhaps even physically...

Whatever.

As long as I don't lose, that's fine.