Just had a quick look at this latest ' Capital Raising ' deal .... and without making it more complicated that it already may appears to some - for me it's nothing more than a ' Glorified ' Options wrapped up in some very creative ' Financial Engineering.
And they pretty much make this clear in Lynch's last 3 sentences in the announcement as highlighted as follows :-
“ This funding comes at a significant time in Sayona’s evolution, with the finishing line for the NALtransaction approaching and the recent announcement of the Nemaska Lithium deal as part of theconsolidation of Québec’s lithium sector,” Mr Lynch said.
“ Importantly though, it provides added optionality for the Company in allowing us to take advantage ofcompelling expansion opportunities across our portfolio as they arise for the benefit of shareholders. "
“ We welcome Battery Metals’ investment as a vote of confidence in Sayona’s future, yet again highlightingour ability to secure capital when needed to support our exciting growth plans. ”
So in terms of the numbers side of the deal - the significance in the numbers for me go something like this. The ' Options ' which are part of the FEE structure virtually strike the ' Mid-Point ' between the previous capital raising price of .008 cents and the FIRST milestone Options pricing of 2.0 cents. So that actually makes it 2.1 cents.
If you look at the
FIRST US $2,000,000 ( @.73 = A $2,739,726) , this would put the SYA SP at a deemed price of .0608 cents based on ONLY the 45 million shares being issued. So obviously that is significant price to be kept in the back of ones mind , however , and to break it down further you must really look at the COMBINED 45 million shares PLUS the 39,545,230 shares being also issued as they state ' as part of the fee ' But it's really not a fee is it ..... Because it's not really a loan but more an ' Equities Option's Facility ' , and one which obviously benefits BMCG. So as result of this , I would consider combining the TWO issues as disclosed in the proposed ASX issue announcement . When you do this , you then divide the A $2,739,726 by the combined 84,545,234 shares being issued to arrive at .3.24 cents - which magically fits with BOTH the Acuity ' defacto ' conversion price of 3.1 cents , and the next milestone ' unlisted ' options pricing of 3.0 cents.....
These are round numbers of course and DO NOT account for the ' discounting ' or half PIP calculations should the VWAP pricing fall in line at a calculated ' center point ' pricing point ( which would be in turn rounded down ) - because this point is not so much the important takeaway from this deal.
So if we look at the ' Total ' number of shares that can potentially be offered under this deal in the 6 ,9 ,12 intervals , we come up with a total of US $8,000,000 ( @.73 = A $ 10,958,904 ) - and so if we divide this by the 515,588,236 total possible shares that can be issued , we arrive again at that ' Critical ' starting point of 2.12 cents per share......
What's also important is the comments where they specifically say that BMCG will be starting ' in the coming days ' with it's first ' Initial Investment ' of US $585,000 .....OR 29.25% of it's FIRST TRANCHE of Investment.
But because it is receiving the
FULL amount of the
FIRST ' investment ' tranche of shares - ie before the AGM approval on 30th October , it could be a very strong possibility that we indeed see the 2.0 cent ' Magical / Critical ' price point well before the date of the AGM. Just my opinion - but sure looks Good ......
(20min delay)