OTCQX:NTTHF - Post by User
Post by
poneon Dec 06, 2018 1:27am
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Post# 29073807
Capital Raise for Production Plant
Capital Raise for Production PlantBased on the old reports I read, we might expect that the production plant for Neo Lithium might require $400M to $500M of additional capital. We might expect a joint venture partner to supply 30% to 40% of that and the market would have to support the rest. It is hard for me to understand valuation post-financing when the new market cap is likely to be more than five times as large as the current market cap, with a significant dilution to go with the new money coming in. Does anyone have guesses about a post-money valuation and how do you get to that number?
Looking at how things when at Orocobre from Oct 2012 when they announced the Toyota joint venture, they had effectively bottomed prior to that announcement and then traded almost flat for two years building out the plant. Is there a reason Neo will not follow a similar course?