management advances ICP project in a challenging expect the shares to rapidly move towards Yara’s investment price ($1.32), and begin to close the gap to analysts’ upgraded targets of $2.50.
The Yara transaction speaks to the value of the asset, the attractiveness of the industry, and the ability of management to advance the project in a challenging market.
With this deal, ICP has:
raised $40 MM at a ~50% premium
taken cash to $60 MM
minimized future dilution
increased the creditworthiness of the company
allayed any remaining process risk concerns
structured a transaction which should not preclude other players from making further strategic investments, signing offtakes or acquiring ICP outright
and most importantly, squarely put ICP in the pole position in the race to develop low cost unconventional SOP supply.