Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

First Tidal Acquisition Corp T.AAA


Primary Symbol: V.AAA.P

First Tidal Acquisition Corp. is a Canada-based capital pool company. The Company's principal business is the identification and evaluation of a qualifying transaction and once identified or evaluated, to negotiate an acquisition or participation in a business subject to receipt of shareholder approval, if required, and acceptance by regulatory authorities. The Company has not generated revenues from operations.


TSXV:AAA.P - Post by User

Post by sdomaeon Jul 20, 2014 7:22pm
305 Views
Post# 22764011

edx over at Agoracon...

edx over at Agoracon...is about to be excommunincated by the Beastie Boys for these comments:

Re: POSSIBLE BUYOUT

in response to Re: POSSIBLE BUYOUT by grm9727
posted on Jul 20, 14 05:32PM

Not likely, IMO. ICL raised $275 million in ~10 year debentures (eg. unsecured) late last year at LIBOR + ~2.3%. 1 year LIBOR rate is hovering around 55 basis points. In other words, they're getting 10 year financing for less than 3%. It was also over-subscribed.

Allana will be extremely lucky to get financing at less than double what ICL can get it at.

https://repo.icl-group.com/Lists/ReportsManagement/Immediate%20Reports/2013/Raising%20$%20275%20Million%20Through%20a%20Private%20Placement%20of%20Debentures%20in%20the%20US%20-%20November%207,%202013.pdf

Don't expect a post-financing buy out. There's a reason the ICL warrants have a 3 year exercise window. That gives 1 year for financing + 2 years for construction.

How many big capital projects run over budget? Most of them. The earliest I see a buy out happening is 6 months before ICL's warrants expire - or about two years from now. That should coincide with the last leg of construction at which point construction risk (mainly cost, but also technical) should more or less be known.
============
============
============



Re: Speculation on financing.

posted on Jul 20, 14 05:42PM

Sadly the ICL deal all but guarantees the most any of us can expect to see out of this is about $2 a share assuming Allana gets its full NPV, we see $425/ton potash prices and there is very little further equity dilution (doesn't seem likely).

I guess there's something to be said for the "potential" of SOP production and 2Mtpa or the possibility of higher potash prices, but given the supply situation I would not count on any of that and I think we'll be lucky if potash is $425/ton by the time the company is taken out.

Although I am super skeptical that ICL will take this project out shortly after financing, if they offered $1.50 per share at that time I would take it. That's about as good as I think anyone who holds to the end (eg another 2 years or longer) is likely to get and I'd rather deploy my capital tied up in Allana into other companies in my portfolio.

<< Previous
Bullboard Posts
Next >>