RE: BMN Going VIP4 Nov 2019 11:29
Hi BBN...again, many thanks for your detailed assessment.
I must admit the last part of this para in the Avalon Merger RNS did make me wonder.
'Conversion of the loan directly into Avalon shares should the Merger not complete. Terms for the conversion mirror those for the merged entity, including a significant minority equity position, right of first refusal on vanadium supply, option but not obligation to participate in future funding rounds and the ability to nominate a director to the Board.'
'the ability to nominate a director to the Board.' implies this could be someone from outside BMN, Avalon/RedT...could this be someone associated to the 'cornerstone investor'.
One other point has crossed my mind and this is perhaps way off base - could this investor be the likes of Golden Summit. Mmm! perhaps not...perhaps as you say BMN's actions are simply a way of laying a strong foundation for a bank or investment fund to pile in big knowing also that the new Avalon/RedT company will have a UK Listing. Now if it is a bank, then could it be the likes of BMO and could they also be the bank looking to be the Leasing Company for the new company too. Have to say, I did wonder why BMO was brought on board when they were and now it could seriously be about timing as BMN were obviously having discussions with Avalon at that time sorting out the Lease Agreement which was clearly reported in the press as having happened back in Feb 2019 not June 2019. (See below for a copy of my timeline).
Looking at Paladinas post - re Vanchem shipments to Oakland then this deal Avalon/RedT also helps to maintain that, already established, business too.
3 Oct 18 RED RNS: Placing update and looking for strategic partner!!!!!
‘It is redT's aim to actively seek out one or more strategic partners with global reach to support and fund the significant opportunities we are successfully developing. This approach will de-risk delivery compared to funding growth solely from existing equity shareholders, who have been extremely supportive to date.’
19 Oct 18 BMN RNS: Golden Summit went from 0% to 4.03% holding in BMN
13 Dec 18 BMN RNS: BMO appointed.
18 Jan 19 BMN RNS: Golden Summit increased holding.
20 Feb 19 GTM article: ‘Commercial customer Sandbar Solar in Santa Cruz bought the flow system from Avalon as part of an off-grid microgrid installation. Meanwhile, it rented the vanadium from a not-yet-identified supplier under a 10-year rental contract with an option to extend.
https://www.greentechmedia.com/articles/read/new-path-to-market-for-flow-batteries-rent-an-electrolyt10 Jun 19 BMN RNS: Electrolyte rental product
This was jointly developed with Avalon for the Sandbar Solar microgrid installation mentioned above back in February and for Avalon’s own use.
According to the GTM article the Vanadium was rented from an unidentified (BMN) supplier way back in February!!!
25 Jul 19 RED RNS: RedT/Avalon merger proposal announced....
Sign In
Follow the stocks
