Call with Paradigm Capital I had a great call with Mr. Wolff from Paradigm Capital (his phone number is on the posted report). He noted that in his discussions with management, it is expected the capital cost of Phase 1 (2 GWh facility) would be about C$450M (US$350M). Assuming government support (debt and grants) of about one-third (C$150M) would leave $300M in equity. He assumes that the required equity would occur via an equity capital raise in VoltaXplore (IPO). With the strong capital markets interest in EV battery producers, the funds required could be raised at favourable terms to the company. I did ask about the shelf prospectus filed and he noted that it is a typical (annual) renewal by NanoXplore, and the likelihood of it being utilized is low.
The valuation of VoltaXplore's 10 GWh facility is approximately $5.2 bln , which assumes that NanoXplore owns 40% of VoltaXplore after an IPO. This valuation is in line LG Energy's recent IPO last month.
Overall, Mr. Wolff was extremely pleased with NanoXplore's progress and is looking forward to Battery Day. In addition, he is forecasting additional supply graphene agreements and that NanoXplore will increase capacity significantly before the end of the year.