Summing up the interim results of the project funding
The project "Duyunov's motors" has reached the funding milestone of $ 70,000,000. Our congratulations to all the investors and partners on this achievement! You keep asking us, "What's next?"
On November 2, Dmitriy Duyunov summed up the interim results of the "Sovelmash" engineering centre construction in the "Expert Time" broadcast. He spoke about what needed to be done to complete the construction and how much more funding would be needed.
"What is the bottom line with which we have approached these dates? We can discuss it a lot, talk about what has been accomplished, what has been done. But you can see it all on the screen. The completion status is very advanced. But while we were progressing and implementing the project, the world was not standing still, it was changing. Naturally, the project was changing as well. That's how the world can change: the last batch of tiles was bought half a month ago costing 1.9 thousand. Today it's 2.3. How long has it been? 10 days? The world is changing," says head of the project Dmitriy Duyunov, commenting on the situation.
"We now have 62 local cost estimates signed totalling 704,668,073 roubles. The amount of work completed under these settlements totalled 231,739,409 roubles. The remaining amount to be paid under these estimates is 272,612,112 roubles. These are the tasks that will need to be paid for when they are completed.
But there are those local cost estimates for which work has not yet been carried out. Because estimates change due to price increases, and you have to make calculations again. But assessing the situation based on that work: we have not finished the third production floor and from axis 16 to axis 23 where there are utility rooms, service rooms, offices, etc. - the finishing and other work has not been carried out there. Plus it is necessary to install sound-absorbing buffer sheets around the climate control units. A noise shield between our plot and the gardening community plot.
According to current calculations, 742,612,112 roubles is needed to complete this work.
There is also an amount that will be needed at the stage of receiving the completion document, to eliminate the faults."
On November 9, Dmitriy Duyunov said on the air of the "Expert Time" program that the required amount had already decreased over the week:
"As of today, the situation is different. Let's remember, it was 704 million rubles, now it is about 686,632,700 rubles. <The amount of work completed under these calculations is> 223,617,540.33 rubles, while it was 231 million rubles, the amount has changed. Counting continues, the whole thing is dynamic. A week goes by and the amount changes. That's what's accounted for. And what is still in the estimates, what we have to calculate and we need to raise more funds, about 470 million. But we haven't calculated that yet, and no local cost estimates of that amount have been made yet. I can tell you one thing: tomorrow or Monday, that landscape will change. It's a dynamic process. It doesn't stand still."
How long will it take to collect the additional amount?
It's important to understand! All amounts and terms mentioned are provisional and are calculated based on the current conditions. They may be adjusted as circumstances change.
In order to complete the construction and obtain the corresponding certificate, "Sovelmash" needs another 742,612,112 roubles, which should be credited to the company's bank account. This amount is consistent with the current calculations of November 2 - and is dynamically changing every day.
The sooner it is attracted, the sooner the project funding will be completed. In case of a high funding rate, the required investment target will be reached in mid-2024.
What lies in store for the project next?
The project continues to develop steadily in accordance with the established course of action. We continue to successfully accomplish our objectives, and in 2023 the project will go to the new investment stage 19 out of the possible 20 ones!
From stage 19, the most important phase of work that the project investors have been waiting for - conversion of shares - will begin, namely its first stage: the start of collecting requests for shares from the investors and forming the register of the future shareholders. This work will be done via the back office, the features and procedure will soon be introduced to the investors.
Once all construction work is complete, the project will move on to the next stages.
• Completion of the construction project, obtaining the corresponding document.
• Supplementing with the required process equipment in accordance with the project.
• Delivery to the state commission for further commissioning and putting into operation.
• Assessment of the assets generated and taking them on the company's balance sheet.
• Redemption of the land plot the D&E is located on and putting it on the balance sheet.
• Transforming OOO "Sovelmash" into a joint stock company.
• Transfer of shares from SOLARGROUP to the investors in accordance with the number of previously purchased investment shares.
• Start of commercial activities.
It is important to understand that the order of the stages is tentative, the tasks can be completed simultaneously, if deemed expedient.
In case of high funding pace, the investors can expect the construction to be completed as early as 2024.