I will be happily oversubscribing for the SPP. SDV have shown...

I will be happily oversubscribing for the SPP. SDV have shown tremendous resilience through covid, for a company that basically had no revenue 2yrs ago, they have managed to retain operational positive cash flow through the covid cycle.

Although this raise is at a large discount, it provides the company a springboard from a very very stable base. They had A$5M in cash closing last quarterly, now they'll have A$25M post this raise. A total of A$3.6M may be payable to Haldon, since Haldon have achieved 120% of the EBITDA target. This leaves A$21M for inventory/manufacturing capability and push into green oil displacement chemistry... Massive IMO, provides the company such a sound base to pivot to other growth initiatives - well done if you ask me.

To put the Haldon performance into perspective, the target was FY21 A$3.42M EBITDA so 120% of this is A$4.1M EBITDA, this is a 32% growth rate for the Haldon business! SDV doesn't talk EBITDA only revenue, gross profit and NPAT (not EBITDA), however suffice to say Haldon achieving A$4.1M is a large contribution to SDV given SDV FY20 NPAT was A$3.5M - so could be around the 35-45% mark, and growing at 32%.... Noting also, Haldon have already nearly achieved the Earnout 2! So we'll need cash for this also.

SDV has only a tick above A$100M MC, in an industry that is growing strongly and will in the decades to come be a significant driver towards a clearer environment. The company has proven over the last 2yrs it can complete with blue chip company on flocculants, coagulants and defoamers (all processing performance), and win market share, it has now proven through Haldon that it can continue to grow the water treatment sector (at great rates), which long term has very high forecast CARG ... All that is missing is proof that the oil friction reduction tech is charging away and we have proof all verticals are growing strongly.

This is a great company and I look forward to participation in the SPP (all IMO). I should note, I am a holder, and have been since 2018 with a 6c entry and 11c average, so thinking long term and sitting on substantial gains I have no issue with the raise price, noting if I bought at 90c I likely would take issue!!!