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Kibo RNS - they have access to funding for the £3m. I expect that we will see proress very soon with Billingham.
Louis Coetzee, CEO of KIBO said, "The Company is very pleased with the strong interest in and rapid progress made thus far in securing funding for the Transaction."
Well that is very positive and dispells many of the concerns about Kibo being a weak partner .
Pedal to the metal here now .
VGLA
Does this bit imply more than £3m is required?
"... the Company is now in receipt of a number of formal term sheets for the funding of the Transaction. The aggregate amount of funding offered to the Company under the term sheets exceed the total funding requirement of GBP 3 million for the Transaction. The potential funders and the Company will now proceed with customary due diligence and approval procedures. The Company anticipates formal funding agreements to be completed contemporaneously with the completion of the Transaction.
surely it is that the funders are keen to be involved in this project. Augers well for the property purchase financing.
Naturally... much more than 3m have to be found, but in a way, they must be found by the SPV. If you want to buy a piece of land that costs over eight million and build a power plant on it that costs tens of millions, the money has to come from somewhere. Fortunately, there are people who can do that (not us).
In the end, the SPV will have corresponding debts, on which it will of course also pay interest, and which will be paid off according to some plan. But that's not our problem because we will very likely have sold the SPV by then. And we are also paid with the money that the SPV borrows, e.g. the technology that is installed.
This is the trick: found a company -> develop a project -> sell the company including the project -> let others invest in the company -> sell things and services to the company as soon as it has money
This is how handle a pipeline of hundreds of millions we the few million in cash we have.
Should have been:
"This is how we handle a pipeline of hundreds of millions with the few million in cash we have."
So, on these bigger projects. If Kibo and the like borrow to fund purchase of the SPV, isn't there a danger of the project not getting completed? Which whilst not "our problem", wouldn't reflect well on Eqtec. Or is this highly unlikely?
BTW I like to ask awkward questions, perhaps seeming to be negative, but just like to look at positives and negatives. Also, I don't want Eqtec to be building up figures in "receivables" column.
Something can always go wrong. The increased risk is usually factored into the interest.
The most important thing is that everything runs smoothly so that everything goes hand in hand as planned. North Fork is an example of what can otherwise happen:
We're doing a great job there (others failed there before us), but somehow everyone wants to have a say, then there were the fires, the court proceedings and Corona. We are now very far advanced, but had to deal with a lot of problems on the way there. And now we are owners with a large stake and have parked money there for a long time that could actually work for us elsewhere. One of my fears is that we will have to become the main owner at some point in order to get the plant online.
Anyway, we already earned money and will earn even more money at North Fork, but if everything had gone better, we would already have it online, could present it as a blueprint project and our money would maybe already initiate a similar project a few miles away.
Funny coincidence: Some new web site content re "risc"
https://eqtec.com/how-to-de-risk-a-waste-to-energy-project-and-make-it-investible/
My post 07:49.I clearly misread the RNS. Kibo have had more than enough offers of funding than £3m required. Apologies.