Sep. 12 at 10:07 PM
The
$GRO equity gap is calculated by taking the total project cost and subtracting the maximum targeted debt and the funds already raised:
$2.5 billion (Total cost) -
$1.8 billion (Max debt) -
$280 million (Funds raised) =
$420 million equity gap
However, news reports indicate the company has a gap closer to
$700 million, suggesting some funds from the
$280 million raised might not be part of the final equity calculation, or that the maximum debt amount is not a certainty.
Therefore, the remaining approximate
$700 million is the equity portion that Brazil Potash still needs to secure, which will result in significant shareholder dilution. Even if financing is secured in the near future, Brazil Potash Corp. won't begin production until around 2030 at the earliest, and any delays could push that date out further.
