Interesting podcast here with the founder of Inhibit Coatings: https://www.morgo.co/podcasts/eldon-tate
"There are 5 of us working at the company at the moment mostly from a technical perspective, but we are looking at growing this out, particularly now that we are breaking into the US market..."
"We derive revenue from project R&D with our customers and also direct sales of materials with our customers"
"We've minimised technical risk and now we are focused on meeting customers and growing sales"
"We are raising at the moment, and the main focus of this raise is all around business development and minimising our commercial risk going forward"
"We're currently based at Victoria University in NZ, but we will be looking to scale up into new facilities"
My take is that this is important news because PVL owns ~17.5% of the company, which is worth around A$800K currently based on an Inhibit valuation of ~$5m (last round was a seed round in July 2021). This puts Inhibit in the top 5 biggest positions in the PVL portfolio.
Following the pending Series A round mentioned in the podcast, we could see the Inhibit valuation double (potentially triple), and PVL's carrying value in Inhibit Coatings may increase again from A$800K currently to north of ~A$1.5M. I would hope that Inhibit's valuation could rise from ~$5M to ~$10M+.
That would lead to another NTA uplift. Given there are circa 120 million PVL shares on issue, a carrying uplift in Inhibit of circa $700K, would equate to a PVL NTA/share uplift of ~0.6c/share. This combined with the recent Skykraft raise (A$120 million), suggests to me that PVL's NTA/share is in the process of rising again from 8.9c/share to potentially north of 10c/share.
PVL Price at posting:
4.8¢ Sentiment: Buy Disclosure: Held
