Deal looks okay to me. $130M of debt due next September is extinguished and $8M of cash in the bank to complete financing of rail and port. Shareholders retain 40% up to 2 cents at least when options may be exercised. ANS and Note Holders won't exercise $400M of options at 2 cents. Will need at least 3 cents. Presumably ANS will bring China funding and off take along with their China contacts. At 2 cents SDL valued at around $400M which is not outrageous if financing in place and at 15% of NPV. Good deal for punters who supported at 0.4-0.5 over the past 2 years (SPP and RTS Issue) and the new punters who bought but RIP long term holders. I can see 2-3 cents.
SDL Price at posting:
0.6¢ Sentiment: Buy Disclosure: Held
