HI Stirer, I guess it’s a risk reduction thing for financiars and may also depend on the type of funding one is trying to achieve. Like your example doesn’t leave much room for error if ML only has 6 years left and things don’t work out as expected I guess. Perhaps different tier lenders have a different risk appetite though and likely a different risk premium. Think so far all the graphite companies that have framework agreements either had or moved to a SML, eg BKT, EV1 and EGR , though perhaps you could confirm that as just going from memory.
Not sure about your distribution of revenue theory, doesn’t seem to be supported by the fact that they will have two appointees initially. Perhaps more realistically they want a say in the revenue generation processs and operations rather than just sitting there to ensure they receive a dividend some years down the track.
EGR Price at posting:
19.5¢ Sentiment: None Disclosure: Held
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