RE:RE:RE:Definitive agreement reached 28.5% ownership or 14% royalty + 14.5% ownership means the same thing. 28.5% of cash flow goes to partner. I still think the partner will issue $40 million for this 28.5%. The $75 million is the top end of a commitment so partner may participate in next project too.
| | $US million |
| EDC loan | 108 |
| Other lenders | 27 |
| Equity partner | 40 |
| Project cost | 175 |
SmilingDog wrote: I think your math might be off. They're not giving up 28% of the equity in the project. They're paying a 14% preferential dividend + giving 14% of the project. The 14% dividend on $75M of capital is equavalent to ~4% of the project if we use the company provided $250M EBITDA estimate. So they're effectively giving up 18% of the project for the $75M of capital. An amazing deal for ReGen.