I have put my views on this already. Here is my post from a few...

I have put my views on this already. Here is my post from a few days ago:


FUNDING.

Total cost of our project USD $1 billion dollars required.

What it didn't mention was total time frame this project will take.

What we know tho, is Novonix intends to scale a total of 40,000TPA in 2025.

This mornings announcement had some hidden eggs IMO. Dr Burns stating this facility can accommodate 75,000TPA for future expansion. That is 35,000TPA over what our 2025 target is. Hence why our project is heavily on the CAPEX side while other anode companies were around the half billion mark.

Dr Burns said the company will explore additional US funding options moving forward.

This is only the first phase, there is another USD $3 billion yet to be allocated at a time yet to be determined. Novonix intends to IMO, build out the 30,000TPA with current funds, possibly a small CR.

But to say we need to CR $870m right now is not correct. IMO in another few years once the second Tranche of BIF funding is on the table, Novonix will secure another $150m or so to flesh out the 75,000TPA build out.

Don't forget that our CFO's father helped get these grants over the table for the POTUS, he was hand picked to do so. Novonix absolutely knows how to play the field when it come to navigating US policy-makers.

By the time we need the funds to start scaling from 40,000 to 75,000TPA the company will be truly bringing in funds in the hundreds of millions PA and have large scaling contracts with a number of Tier 1 EV battery manufacturers. Add the second BIF grant, Novonix would have played the smart game with capital requirements to scale.

This will assist with the costs associated with getting the $870m build out going. Add in debt funding which management have spoken about over the years via the US DoE loan program.

The dilution will be minimal.

Change my mind....


DYOR