Gensource Potash Corp V.GSP

Updated December 2022 Corporate Presentation

[bobbythebaker]

There is a December 2022 revision to GSP's corporate presentation now on their website:  https://gensourcepotash.ca/wp-content/uploads/2022/12/Website-Presentation-dec-2022.pdf

 

Pretty much the same as we've seen before, but there's one change I found interesting.  The ownership structure of K-Clean, which is the entity that would own the Tugaske Project, has gone from 67% GSP and 33% HELM to unknown percentages.

 

My guess is HELM is considering increased ownership in the project, which could in turn lessen GSP's required cash contribution.

 

I suspect there are several possible levers here (ie adjusted ownership percentage, convertible debt, royalties/streams, 3rd party Tugaske ownership) besides GSP issuing straight equity at the parent for the $105mm in question.

[mdjbrown]

btb, HELM is owed $3 milllion dollars by Gsp which has been drawn from the credit facility. I would assume those funds were intended to increase Gsp's chances of finding an Equity partner, which to date has not materialized, and now that credit facility is more than half drawn. Based on some of the previous arrangements in the potash sector including Encanto, Western, Karnalyte, etc, an

[stockwatcher248]

thx BTB for posting.....seems to me like a two edged sword......either they massively dilute their stock to raise capital, which could be over 500k shares...or they find altenative financing avenues as you suggest which could drop their ownership significantly, and corresponding asset value.....which route do you feel would be more beneficial to shareholders???

[bobbythebaker]

On the one hand, because GSP has several other interested parties wishing to initiate additional projects, a reduced K-Clean ownership stake resulting in less dilution today could allow current shareholders to get more leverage to those projects.   On the other hand, K-Clean is potentially a behemoth unto itself, with a doubling of capacity already being planned, and I believe I heard at

[stockwatcher248]

thx for reply BTB....interesting points...kinda short term for long term gain.....

[mdjbrown]

Unfortunately sw248, a short term pain / long term gain strategy might be that of share consolidation. With an increase in corporations completeing 20 for 1, to 10 for 1 share splits this past couple months to pull their share prices out of penny status, that appears to be a common strategy to attract investment.  With almost half a billion shares currently outstanding, and you correctly

[Relaxing]

With the insiders of Gensource holding such a big position of shares,  any rollback of shares will hurt them as much ( if not more ) then it will hurt us. Thats what I like so much about Gensource and possibly why they are being so selective in choosing the right deal to close the fiancing to build the plant. I would rather they hold out for a good deal rather then just close any deal (and

[bobbythebaker]

And right on schedule, GSP has just posted a revised Corporate Presenatation to their site for January 2023.  "Current ownership structure of the Tugaske Project" and KClean both now show 100% owned by GSP.  I wouldn't think GSP/HELM would wipe the slate clean on the ownership structure unless they had line of sight for a likely replacement.

[stockwatcher248]

I remember reading your post a month ago BTB and should have paid more attention to it.....wouldn't have been so shocked and disappointed with the news the other day...