Consolidation, page-7

Sunrise Project funding is driving some challenging scenarios for Clean TeQ such as share consolidation and Water division demerger proposals.

I suspect feedback from Macquarie Capital’s billion dollar global funding safari is that project financiers see Clean TeQ as a complicated business to get their head around.

I can imagine the Macquarie Capital Investment Banker and New Financier meetings going like;

• Macquarie Capital: "We wish to raise $2 billion dollars for Clean TeQ, a small ASX listed company involved in various activities from Exploration (Sunrise Platinum, Minore Project - Au/Cu), Mining (Ni, Co, Sc, PGM), Refining (Nickel Sulphate, Cobalt Sulphate, Scandium Oxide, Amsul, Battery Recycling) and Water Treatment Technology (CIF, DESALX, BIOCLENS, EVAPX, HIROX, BIONEX, GO-Membrane NematiQ JV)."
• New Financier: “This Aussie company does WHAT?” “What am I investing in, is it a mining company, a water company, technology company, battery business, gold miner, PGM miner. STOP, you are confusing me.” “What is the value of the water business? “So where is my money going? 100% Sunrise Project or into the Water business? How do I know my money will only be used in the development of the Sunrise Project?
• Possible Macquarie Capital to CLQ feedback: 1/ Investors only want to invest in Sunrise, not the water business, and 2/ Simplify the Clean TeQ portfolio with demerger of Water business!!!!

As with business Mergers and Acquisitions, the new owners of a business sell off the non-core business activities for a nice profit to help subsidies their initial M&A purchase costs. Could a Water Business IPO help fund Sunrise Project future debt requirements, simplify the business, better focus management & technical team while return money to shareholders.