Post by
lithomon on Mar 04, 2024 5:50pm
Mitsubishi Deal Valued at $1.46 per FL Share
Thanks Dogger for that math. Based on current Lithium metrics, $1.46 seems reasonable (before dilution). That brings FL back to August 2023 share price market valuation.
Had the Mitsubishi deal got done a couple years ago at the height of the Lithium market, yes, for sure, Dogger's calculated per share valuation would be double to triple the $1.46 which partly explains why the shares were trading near the $4 price level.
Now we have to start buying Canadian made Honda's (e.g., CR-V Hybrid) and Mitsubishi Outlander PHEV's. A new Fleet of EV's outside FL's office. Possibly Mitsubishi EV purchase incentive extended to FL shareholders.
As Dogger wrote,
......." So $25mm for a 7.5% stake implies a valuation today of $333.3mm, and a share value (on 227mm o/s shares) of $1.46. if you work in the fact that 227mm shares is now 92.5% of the new JV then we're technically working that value against a modified share count of about 246,083,243. That runs the share value to $1.35 with dilution.
Comment by
sfct1978 on Mar 04, 2024 11:00pm
Why are you mentioning dilution with this fantastic agreement? From What I've read, there are ZERO shares being added, which means NO dilution is occurring! Please enlighten me with how this is diluting the share structure.