1320 is bang on ( step up deal)
STEP UP Deal Rational
The market is looking for increased volume at 88-90%-they need GMI roadmap to boost.
The pricing deck moves up incrementally 88-90-92 advantexx,isolexx,vitalexx so you can make money at 88% also make Vitalexx which is the highest value product,so the question remains one of volume.
any deal I would suspect will be a step up deal,as volume improves,more money added,more planning for a full scale newly designed greenfield plant
30mm to provide more ops run room and additional cap ex to get sasky additional equipment identified by GMI to get plant up to 3500 tons at 10.00 price deck.
3500 tons yr product 50% vitalexx 50% advantexx ,isolexx
52 weeks= 67tons per week required once vitalexx installed
33 tons on current processing, figuring yeilds will improve significantly as vitalexx is incorporated
were at 3 tons wk ,they need a 10x ramp up.
if it cost them 3mm on capex to get 3 tons of new system,30-40 mm may get them to these numbers.
If they prove it up ,then the partner would step up next level to 100-150mm and expect a big chunk of profit. A step up deal would also include stock ,you would expect the shares to rise on any deal,also profit sharing JV agreement ,IP agreements etc.
this deal if it gets done will be costly for BXI,but would give them new life,good for shareholders.
no one will commit 30mm unless they feel pretty confident
hurry up and wait