Like every other company thread there are a few nuggets to be found, but also a lot of low quality posts from both sides of the fence.
Here is my view: - Before signing a deal like this, any insto investor would complete thorough DD with access to commercially sensitive information that isn't disclosed to plebs like us - Lind Partners and SBC GIF would have likely had access to cost and revenue projections, more detailed production ramp up timelines, more detailed info on customers, off takes and sales pipeline - It is reasonable to assume that after this detailed financial analysis, Lind Partners and SBC concluded that iM3NY will be cash flow positive within 18 months in order to repay the principal - If the high level production timelines that MNS have provided to the market are achieved, then >1GWH of production within 18 months should mean iM3NY is basically printing cash (it's then a question around how this cash flow is used - debt payments, GWH growth at NY, Nachu development, Townville, etc) - The "Investors" would have seen detail behind the plan that we haven't and looks like they are comfortable that it will be executed - Assuming Catch2200's effective annual interest rate calculation is correct then 25% does seem high, however the post was very one sided... two other points to consider (1) MNS aren't just paying for the cash, they are also paying for being aligned to two big US investor groups - this relationship will unlock a broader investment network and will be invaluable if/when a US listing takes place (2) yes debt is cheap right now, but a significant risk premium is applied to any high risk/high growth company with aggressive expansion plans, particularly a company that is not yet producing revenue - The options at 40c are a good kicker, $8m cash injection at some point in the future if all goes to plan, an incentive that aligns the "Investors" interests to the shareholders interests and a signal that smart money see's the share price increasing in the future
The biggest question that is unanswered for me is around the raw material supply chain. EV raw materials are in short supply and every big player in the world wants them. Prices are rising. Correct me if I'm wrong but I haven't seen anything from MNS regarding who, when or at what cost they are procuring their inputs. Anyone have a view on this?
IMO, DYOR Baggas
MNS Price at posting:
30.0¢ Sentiment: Hold Disclosure: Held
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