RE:RE:Renewables IPO Timing - August + $585 million to TWMI am looking at this from a different angle. If TWM did an equity raise themselves for the Renewable diesel project at the same $180 million level they may get from Tidewater Renewables (TideR) they would need to issue around 138 million shares at the current $1.30 'ish price. That would result in a 40% increase in number of shares outstanding - enormous dilution and not really a viable option.
TideR is a creative solution to the funding issue and if it is successful is good for TWM shareholders - retain a majority stake in the renewable diesel operation and set up TWM with the financial capacity for another major growth project, plus the possibility they could renegotiate/renew their outstanding debt on better terms with the much stronger balance sheet.
While the renewable diesel project is a major $ investment, it is a minor, not major, expansion of PGR operations.
Keeping my fingers crossed that CIBC and National Bank can sell this. It is now around 2 years since the Husky Refinery deal was announced and this has been successfully added to the TWM operations. Time for seomething new?