Hi @Plext,Thanks for raising the 25% costs attributable via MEP...

Hi @Plext,Thanks for raising the 25% costs attributable via MEP and 'cash equivalents' due from options conversion.

Rightly or wrongly I've taken the stance that ultimately ADN will raise for this cash as a 'whole of project funding' arrangement, where MEP will maintain their 25% stake. - As @knicksafc has pointed out, "for simplicity". - But completely understand the contractual implications on face value.

For information a reduction of $30M in debt doesn't reduced ADN's WACC considerably (I.e. its about 0.2% reduction) due to the current strength of its capital structure.Running the same Cost of Capital exercise for MEP (utilising $7.5M equity raise and $13.3M debt), suffice to say its far more favourable IMO for ADN to raise the cash due to their current cost of equity being considerably lower than that of MEP. - This statement speaks volumes in terms of ADN's situation.

As a side note: Factoring in 100% debt funding (which in the above scenario only equates to 14.8% weighting) in conjunction with the strength of its equity, actually gives ADN quite a bit of breathing room to bring in more future cheap debt (HPA anyone?) with the added benefits of taxation/interest implications etc.