Thanks JA and appreciate you reaffirming the positive sentiment...

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brunod

418 Posts.

931

24/03/24

19:04

Post #: 73033866
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Originally posted by JA20: ↑

Bruno:

I’m rarely here, but your passionate post deserves a response.

Some observations.

GW & his team (including a united board & superb advisors) have created something out of nothing. Literally, nothing.

Managerial determination, savvy & skill aside, every TVN investor knew or ought to have known that TVN was not going to be immune to the nuclear winter that has engulfed the critical minerals sector (however I agree with GW that mine closures such as we have seen lately often signal a bottom in the afflicted sector).

As much as Team GW has been a colossal upgrade in managerial competence, there was one thing TVN lacked: term funding.

We now have it.

L1 may not be a familiar name to most TVN shareholders, but I assure you they are superb investors, superb people & a great Australian success story (yes, with a growing US-based business as well).

As for financial derivatives, I think I am well qualified to comment.

Hotcopper is not the venue for a convertible note term sheet seminar, so I will just say this.

Have a look at Annexure A (page 5) of the filing I will paste below.

It is a standard, convertible note term sheet that to this trained eye (ear?) says two things very clearly:

A) the negotiation was amicable
B) L1 wants TVN to succeed, & this is a way of increasing their exposure.

Not that you were suggesting it, but I did sense a tinge of apprehension in your post: this is not a hostile transaction, it is clear that the L1 investment is a vote of confidence in the road ahead TVN.

We are all fortunate to have such a high-calibre, high-quality investor on board.

This transaction should substantially increase the probability that our superb managerial & executive team can execute with confidence, & deliver the long term objectives we are all here for.

Onwards.

With more upwards.

https://tivan.com.au/wp-content/uploads/2024/03/61199570.pdf

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Thanks JA and appreciate you reaffirming the positive sentiment of the convertible funding with L1. That’s adds a lot of weight to what has been achieved and I know you are more than qualified to comment. The audience here should take note.

I wasn’t apprehensive but just wanted the audience to realise that structured financing is not where I play (but understand instruments of this type) so wanted to make that clear. In my view the funding essentially looks like quasi equity and expect that’s how it will recognises for accounting purposes.

TVN Price at posting: 5.9¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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