Braidy Industries lacks enough private investment to construct its aluminium rolling mill; seeks alternative financing

According to a regulatory filing on Monday, Braidy Industries still lacks about US$300 million in private investment to fund construction of its Kentucky aluminium rolling mill. The filing also says that half of Rusal’s US$200 million investment in the mill is dependent on Braidy’s ability to raise US$300 million from other investors and secure construction financing.

Braidy says in the statement that it has “received indications of interest from prospective investors in excess of this ($300 million) amount, (but) these prospective investors currently are not committed to make any investments.”

Braidy Industries chairman and CEO Craig Bouchard expressed optimism about the project in a statement: "Our progress building one of the largest mills in the world has gone faster than any project of this size in memory. We couldn’t be more excited about our future and the positive impact we will have on the economy of eastern Kentucky."

Gov. Matt Bevin’s administration invested US$15 million of state money into Braidy Industries in 2017, making taxpayers the company’s biggest investor in its initial funding round. The company has since raised an additional US$75 million from private sources, according to its filings.

The company is currently looking beyond government-backed loans for the mill’s construction. In Monday’s filing the company says it is “considering alternative debt and lease financing sources, or a combination of sources, in order to finance construction of the mill.”

Braidy spoke about possible financing from "global financial institutions" without taking any name. The company still sticks to its 2021 commissioning target for the plant.

The new filing also says that the company’s financial projections released in October showing anticipated sales, operating costs and other information about the rolling mill, are “outdated” after considering the $200 million investment by Rusal.

Rusal now gets a 40% stake in the mill project after the investment, leaving Braidy Industries with 60% share instead of the whole ownership the mill. However, Braidy Industries does not have any plan to release updated projections.

Braidy Industries has been selling shares to the general public for as little as US$108 through an online crowdfunding portal, which has accumulated US$13.4 million till date from more than 800 investors. Bouchard appreciated the success of this crowdfunding offering, which is likely to be closed on July 22.

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