Ann: SVL Secures A$30.2 Million Convertible Debenture Funding, page-21

First 21 Last

Share
Profile

Follow
deserthead

891 Posts.

216

18/07/24

19:42

Post #: 74818577
Share

Originally posted by qdos: ↑

Interesting. Positive is a lot of funding for a period that is going to need a truckload of funding.. from a development perspective they'll still need to do a chunky raise at development as no bank will give 100% leverage but that's years away as not even at DFS yet. Those can take years.

Negative.. I've had to deal with debentures before and this all hinges on a large increase in share price (which needs to factor in the dilution of this issuance) over next 4 years. If anything goes wrong, the debenture holders can either take out a large chunk of the company at a hefty discount or they can gain ownership of the assets through their General Security Agreement.

It's ballsy especially if they get any EPBC push back. This may also be targeted at the EPBC who will be surely looking at this from both financial and operational feasibility perspective.

Looking further afield. Checking a map, one of their future growth targets include a prospect in the water catchment for Mudgee and Duboo (coomber). That is a big risk but it's only a future option so who knows if it is ever going to matter here.

I'll still sit back for EPBC and feasibility optimisation. Probably cap my return but if either aren't great the downside is there to watch.

gla.

Expand

"not even at DFS yet. Those can take years"

You don't know this company very well do you?.....You pulled that one straight out of your ____!

Last edited by deserthead: 18/07/24

SVL Price at posting: 15.5¢ Sentiment: Buy Disclosure: Held
8 Upvote

1 Great analysis

Reply

Top Stories

IRX

InhaleRX snags $38.5M in funding from VC biotech funder Clendon

What's causing the cost-of-living crisis, and how to navigate it

MTH

Mithril's drilling in Mexico picks up silver at 997g/t, gold at 28g/t

MKT

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

Week 42 Wrap: HotCopper's top picks; new ASX 200 record; world yawns at war

SWP

Swoop lobs $18M offer at microcap telecom Vonex – in which it holds 19.9%

M4M

Macro, Norden set up transport solutions initiative for West Pilbara

SNX

Sierra Nevada raises $2M for silver exploration at Blackhawk

TLG

Talga Group wins key permit for flagship graphite mine in Sweden

NVU

Nanoveu surges 10% after benchmark testing for new AI chip begins