so a cool 300M market cap for Bio. What will the disount be? Not much I suspect since two decades of experience and multiple major deals already in the works. Just add $5 a share for bioprocess figuring current $10 is aleady discounted and I see a $15 strike offer. Nice.
I like your thinking. Minority interest I thought would be in the 1-5% range. Branson would want more than 1-5%. From a name dropping standpoint, I am thinking Bill Gates or Ted Turner. We already know that the guy from Sun ie McNealy is in on this somehow with Celunol.
Gates is on a buying spree so expect some of his money to come this way.
If you're going to make a wishlist of investor names, how about you include some even bigger ones like Exxon, Chevron, BP, Shell, DuPont? $30 million is hardly anything to those companies & it would make a wonderful PR for them to be able to say they are "leading the world" in cellulosic biofuels. Not that any of this is likely to happen, but it kind of makes you want to load up on shares just in case.
10% for $30 mln would be blockbuster. I am thinking more in line of a 25-30% stake for $30 mln considering where we are in the process (revenues running around $1 mln per Q) and assuming that we will see one or more key investors (such as Khosla or Branson) which is worth its "goodwill weight in gold".
Gates bought 25% of PEIX for $85 million when it was about the same place in terms of revenue & potential. He is still up about 120% on this investment even after the bubble collapsed on that stock, so I would think that is a pretty fair precendent. I'd say that puts $30 million more inline with a 10% share. Anything more and we'll probably see a negative reaction from the market whether it is fair or not. I agree that a big name investor with good connections would be worth a lot to the company and might justify a slightly higher amount of dilution.