With the recent 25M options converted plus the other conversions over the past few months I would estimate Magnis cash position today to be about $6-7M. The last quarterly I looked at had a burn rate of around $1M per month so we are likely good till the end of the year for working capital.
Obviously Magnis is going for debt funding which would probably include an equity component. I think the question is when do they raise this equity component?
Before a Western off-take (soon), straight after the first one, after the final one (assuming more than one) or after the finance deal is announced? The share price (and dilution) will be different at each stage so where do you do it?
The good part of this story is that we have Blue Ocean Equities on our side who recently carried out a CR for PLS for $100M. This was apparently heavily oversubscribed and they could have raised $300M if they wanted to.
My wild guess would be raise funds after the first Western off-take is announced when the share price is around $1.50 in a month or two.
MNS Price at posting:
94.0¢ Sentiment: Buy Disclosure: Held
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