Post by
1student on Apr 08, 2024 11:28pm
Rgarding The NanoXplore Credit Facility . . .
The interested party or interested parties provisioning NanoXplore that long touted and simply not yet locked down roughly $150 Million credit facility are seemingly playing silly buggers.
Perhaps they are also waiting for the Bank of Canada to perhaps undertake it's first quarter point interest rate cut this week, i.e. obviously in addition to waiting for a shipload of necessary capital infusion for NanoXplore to be fully and finally locked down?
It's clear that NanoXplore doesn't generate anywhere remotely near the amount of free cash flow required in order to comfortably carry the interest obligations owed under a roughly $150 Million credit facility.
In my opinion, there needs to be a bonafide and bankable type $70 Million capital infusion to the NanoXplore balance sheet, either before or as part in parcel of locking down that $150 Million credit facility, e.g. a Government of Canada funded and perhaps Strategic Innovation Fund ("SIF") provisioned capital grant, a recognized chemicals company up front advanced initial commercial agreement relating non-refundable cash payment, etc.
Should NanoXplore sell 70% of the VoltaXplore enterprise, doing so would likely only yield $15 Million; and yet, that's straight forward and quite simple math supporting that assumption.
Although, I do have to say that depending on which globally recognized brand named companies actually are the VoltaXplore offtake agreements issuing customers, more specifically whom the primary VoltaXplore offtake agreement customer/partner/financier actually would be and also whom the two 500 MWh capacity each offtake purchasing brand named customers would in fact be, NanoXplore could very well place a new much higher price tag in necessarily replacing that previous Martinrea International Inc affixed VoltaXplore price tag of a mere $20 Million.
Perhaps a newly affixed $70 Million price tag for 75% equity ownership of the VoltaXplore enterprise?
After all, an initial 10 year long and 1 GWh per annum production offtake purchase agreement provisioned by a globally recognized brand named customer/partner/financier would, all by itself, be worth a heck of a lot more than a mere $20 Million. Obviously we are wating for this Government of Canada spring budget to be tabled at the House of Commons and for any goodies supported by this coming 2024 budget to be revealed.
I wonder just how much more Government of Canada invested capital will be infused into the Canada Growth Fund Corporation and whether a direct debt centric capital investment can be taken up by and on behalf of "The Canada Growth Fund Corporation" as well?
Who knows and "who" is not telling.