I’m with you CT, ZEO has secured sufficient runway to further...

I’m with you CT, ZEO has secured sufficient runway to further execute on its projects and hopefully this offers the time needed to transition these into more commercial phases. SP may trade lower, side-ways, whatever the market decides…but ZEO has undoubtedly increased the capital it has on hand to accelerate projects.

On that note and regarding my use of the word ‘recapitalised’, I’d previously posted that I estimated ZEO cash on hand to be around $1.5m from Mar Q 5B, so with an extra $3m from capital raise that would grow to around $4.5m. Then if one considers 22’FY P/L indicated roughly 70% was R&D spend and used that to forecast further future R&D rebate , ZEO could potentially have access to >$6m in funding, when one takes into account the Govt. R&D incentive and this does not include 23’FY R&D rebate, from R&D applicable expenditure undertaken prior to capital raise funds landing. So my rough numbers (DYOR) forecast ZEO ‘could’ have between $6-7m (incl. 23’FY R&D claim) of funding available, due to the benefits of leveraging the R&D rebate. So that looks to me as sufficient capital to drive strategic initiatives, until something commercially tangible lands…maybe it won’t, although it’s not like ZEO’s current projects don’t have that near term potential.

Then you consider m/c at raise price which by my calcs is around $75m and align this to ZEO’s assets (IP portfolio, approved ML, freehold land and fully operating lab/piloting facility, current producing samples) and its climate-tech and other revenue centric opportunities, tabled in the recent investor presentation (below) and things IMHO start looking interesting.



IMHO ZEO is definitely not looking as dire (especially after increasing cash position) as some are touting. We all know, HC posters have their own agendas, ie some talking it up, whilst others are talk it lower. If the SP declines, my view is it will only further enhance risk/reward scenario, so as I said, I’m with CT and I’m happy to do my own research. DYOR