Ann: Investment and Offtake with General Motors, page-200

There are a few posts about GM dilution that I think are wrong.

Note: "Under the Investment Agreement, GM has agreed to invest up to US$69m in equity in QPM, comprised ofthe Initial Investment of up to US$25m and FID Investment of up to US$44m. At each opportunity, GM willinvest the maximum amount possible under its commitment, subject to GM’s total shareholding in QPMbeing less than 10.0%."

So, if I've understood correctly, GM's involvement only dilutes shares by 10% at most. If QPM raises more equity outside GM, then the SOI increases, and GM could exercise more options. However, if QPM raises a significant proportion of the capex via loans, then the need for increased SOI diminishes proportionately, which caps the dilution, proportionately.

If I've understood correctly, this makes the deal a very good one for shareholders.