News: IVQ Invitrocue Enters Subscription Agreement With Chinalink, page-8

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BradlyBear

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11/12/19

11:36

Post #: 41908166
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Originally posted by SuperWealthy: ↑

OK you forced me to read it to see how deep the poo is.

On the face of it USD $10m (approx AUD $15m) for a dilution that ends up delivering them about half of IVQ - currently valued at $34m-$35m.

TBH it's about the best deal that can be expected given the current situation isn't exactly stellar, she still isn't even trading,IVQ appear to have secured much needed capital to keep them going over the next couple of yrs, which would have likely required several raisings over that period and resulted in a similar dilution in the end.

On the downside, this deal with a Chinese company (I don't know anything about them) seems to have many caveats and milestones which I couldn't be bothered examining in detail but there was enough of them to suggest that the first tranche (USD $3m) seems likely but the final tranche of USD $7m could be a different story and I've been involved in too many mining/exploration Cos that have done a seemingly great deal with a Chinese partner that didn't turn out to be as rosy as it initially promised.

Does anyone know if this Chinese JV partner have anything to offer IVQ in terms of expertise, experience, market networks etc?

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The company needed a miracle to come out of this ahead and this isn't it but as you say its about as good as it gets. Saying its half the company is a bit of a stretch, somewhere between that and a third. Plus they're all reliant on successful trials so that's all thats going to matter in the long run.

Last edited by BradlyBear: 11/12/19

IVQ Price at posting: 6.0¢ Sentiment: None Disclosure: Held
1 Upvote

0 Great analysis

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