Capital Raising on the cards

IMHO the AGM presentation was exciting, and outlined plans for growth.

But what was lacking was an enunciation of just how that growth will be funded.
And those plans for growth are being implemented as we speak.

I have copied the relevant parts of the presentation.

EDE had only $0.634m cash back at end Sept 15. It's now end Nov, so that small cash pile will be even less.

I am not being "Debbie-Downramper", but some things are obvious.

Colorado expansion - started and taking 9mths to complete : US$2-3m
Georgia expansion - just Phase 1 - getting started -takes 18mths - US$ 35m
Georgia expansion Phase 2 - not started - taking 4yrs - another US$35m (but probably dependent upon success of Phase 1?)
Also land purchase of US$1.15m already committed to.

So at minimum it looks like EDE need to find at least US$40m

Below they comment that the state authorities have schemes in place to assist these types of industrial investment and development.
The US$20m "support" they refer to is not loan funds imho. It is "support" which would assist in providing comfort to a lender. Tax credits etc is not loan funds. It just assists cash flow and profitability. But still a good benefit.

The US market has a far better and more sophisticated market for funding these sorts of developments.
But it would only be a combination of debt + equity.
you would never get 100% debt funding, because lenders always want hurt money from the principals.

So the question for us shareholders, is just how much equity and Capital Raising will be required ?????

i reckon the best scenario is a 50/50 spilt.  (but that is just a guess)
I will guess a Placement and a Rights Issue very, very soon.

cheers

****************************************************************************************

In anticipation of a rapidly increasing demand, the following developments have occurred in the
expansion Eden’s production capability of EdenCreteTM :-
In Colorado, steps are currently underway to expand the production capability to
approximately 250,000 gallons (approximately 950,000 litres) of EdenCreteTM per annum and
will take 9 months to complete and cost around US$2-3million.
1. In Georgia, steps have also been taken to establish a global manufacturing and marketing
base for EdenCreteTM and expand production initially to 12.5 million gallons (47.5 million
litres) of EdenCreteTM per annum, and then increasing progressively to 50 million gallons
(190 million litres) or more, with the first phase to be completed within 18 months at a cost of
approximately US$35million and the full expansion to be completed within 4 years at a total
cost in the order of US$70million. Significant process has been made in relation to this​

expansion, including:

State and regional financial incentives from both the Georgia Economic Development
Authority and Augusta Economic Development Authority, largely based on the size
of the project investment and the number and value of jobs that will be created, are
currently being negotiated. The indications received to date include potential
aggregated financial support worth more than US$20million, primarily through a
series of tax credits and other financial support that can be applied over an extended
period of between 10-20 years against various State and regional taxes such as
corporate income tax, sales tax or property tax. In addition other benefits that may be
provided include staff selection and job training assistance, and at a regional level
assistance with financing through a mechanism known as an Industrial Revenue
Bond. An offer of a similar sized, alternative industrial site in the Augusta area, free​

of charge, is also under discussion