Hi Guernsey - If all it was only a capital raising, then I don't think we got a very good deal at all.
We traded 100% ownership of CUR to 53% ownership of the combined entity for $8.3m. One way of thinking about it is that we added about 34m new shares to our current 39m (such that 39m is now 53% of the 73m new shares). Divide the $8.3m by the 34m new shares and you come up with about 24 cents per share. We could have done better than that in a capital raising. Same money, fewer shares, more earnings per share.
Not sure we would have had to raise $8.3m worth of equity though. If we can believe CUR that cash is available through the Brazilian government, why would we give away equity to get to the same point? Maybe I'm wrong in my thinking, but anytime you get an IRR for a project higher than the cost of debt (my modeling for CUR projects show an IRR well above the cost of debt), equity financing is not a fair choice to current shareholders.
I'll have to try to find out just what GGY has going for it. If there isn't anything there, then I'd say CUR made a poor decision.
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