"I am amazed this is still up 20% on the back of this "deal".......

"I am amazed this is still up 20% on the back of this "deal".... and it's not even a deal, an "indicative, conditional, non-binding" offer from a desperate SPAC, already well past it's use by date, and where the spac promoters can only get payday if they get some sort of deal done with someone. Still, as you correctly nail on the head, the elephant in the room of spacs, is redemption by stale PPYA punters from early 2022 want there money back after missing out on any gains once the reality hit spacs in the face...

If you want to see what redemption and artificial market cap looks like, go run your knuckles over EUR. They did a SPAC deal in 2022 (same vintage as PPYA was IPO'd) for an astrnomical valuation for a SPAC held US$159M cash...

Fastforawrd and on March the SPAC merger had finally completed, the EUR worth US$750M of the JVCo as promised, approx 80% holding in JVCo ith the lithium project assets.


At closing of the deal, how much cash after redemptions was left? Now please be seated and put down any hot drinks for this... under $1M of the original $159M, the rest having been redeemed by IPO punters happy to get their money less expenses back. The other US$10M (as shown) below was provided by the three PIPE investors who organised this clown show, post redemption. Unsurprisingly, EUR shares price has halved over the 2 years and MC = A$80M verses their US$800M 'value' in JVCo CRML (which I originally thought was an acronym for 'criminal' but is in fact 'critical minerals', though with the guvvie subsides sloshing around might well be synonymous these days?).


Anywho, it does bring some more sizzle to the story (Sizzle was actually the name of EUR's SPAC btw) and who knows where a savvy management might 'leverage' such juicy expressions of interest and keep the TO pot cooking? EUR's problem was ultimately a ordinary deposit behind all the smoke and mirrors, because it all comes down to project quality and economics in the end imho.

GLTAH