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charliemark

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13/12/23

23:14

Post #: 71436949
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Originally posted by stezz: ↑

A lot of information in this SEC amendment. I am trying to get my head around the Vellar funding deal.

From what I can tell, it looks like SZZL/CRML will issue 20m (part paid) shares for an initial USD10m (part paid to USD 50c). This was to satisfy the min cash for the SEC and a good way to avoid excessive dilution - potentially if they can create enough interest and buy support post IPO.

The full share can then be issued to Vellar on further payment based on the CRML trading price less a discount based in different conditions.

This will leave EUR with about 67% of CRML on listing.

Also, the Vellar Agreement and the GEM USD135m are mutually exclusive:
From page 147:

This Vellar funding could raise a further USD20m -> USD200m+ depending on how CRML trades after IPO. From what I can tell the final payment is either a 20% discount to last traded price or if CRML trades below USD6 the discount is 50%. Plus need to add back in the original USD0.50.

I am thinking there are likely a few things up the sleeve to add some interest after listing (Zone 2 drilling, Planning fast track approval, Euro grant / financing)?

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20% for $10 million. Seems like a bad deal to me. Wasn't this valued at $750 million?

EUR Price at posting: 7.0¢ Sentiment: Hold Disclosure: Held
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