HI Rory,
I am not a financial advisor, not associated with a financial advisor, this is not to be construed as financial advice.
For the general questions - I will have a go at offering 'my opinion', you can vote on all / none / or some of the resolutions as you decide, voting or not voting may have an impact on the outcome whereas, the demerger will not proceed if there is not enough vote for the resolution.
re "
what do i need to vote on?"
The resolutions for the "General Meeting" in regards to the demerger are:
(1) Approval for an equal capital reduction and in-specie distribution of Leo Lithium Shares (Demerger Resolution)
~ this is to officially vote on so the demerger can proceed,
(i) the term "capital reduction" means that the Lithium Asset (capital) is being separated from Firefinch into the new company Leo Lithium company, thus there is a reduction in Firefinch's assets
(ii) In-specie means shares distributed to FFX holders in the new Leo Lithium as a payment for the loss of the asset/ownership of the Goulamina project.
(2) Approval of the New Firefinch Award Plan
~ without having to read too much and comparing, this appears to be just an updated version of the current Award Plan
(3) Approval of potential termination benefit in relation to securities issued pursuant to the New Firefinch Awards Plan
~ "as above" point 2, an updated version of termination benefits
(4) Ratification of prior issue of Firefinch Shares
~ these were the shares issued during the last placement, although the were issue without shareholder approval (as the were under the limit of the 15% capacity) by approving these placement shares, resets the 15% capacity ~ means the company can issue shares without share holder approval.
(5) Increase in Directors Fees
~ Regardless of what some posters have suggested, this does not mean pay increase to the current directors, it is an increase in the Director's pool of available funds, from $600,000 - $800,000, this is necessary if the company requires to increase the size of the board of directors
(6) Grant of Firefinch Performance Rights to Dr Michael Anderson or his nominee/s
~ this is not a new issue of rights, it is a rebalance of the current performance rights based on the company anticipating a fall in the share price of Firefinch after the demerger is completed. The recipient entered into a contract service agreement with defined monetary values, with decrease in the Firefinch share price affects the agreed contract value terms and the trigger values.
(7) Grant of Firefinch Performance Rights to Brett Fraser or his nominee/s
~ "as per point 6 above"
(8) Grant of Firefinch Performance Rights to Bradley Gordon or his nominee/s
~ "as per point 6 above"
re: "can I do nothing and just hold my Firefinch Shares?"
~ in short, yes you can, it is not mandatory to vote or subscribe to the Entitlement Offer.
~ the calculations of the In-Specie distribution (the shares you will be given because you are a FFX shareholder)
~ you will receive 1 Leo Lithium Share for every 1.4 Firefinch Shares you currently own
~ FFX 150,000 / 1.4 = LLL 107,143 ~ these are the shares you will be given
At completion if you do nothing you will own FFX 150,000 & LLL 107,143
If you decided to participate in the Entitlement Offer;
~ for every FFX share you own, you can subscribe for shares in the Offer on the ration of 10.33 / 1
Currently you own 150,000 FFX shares
FFX 150,000 / 10.33 = LLL 14,520 shares available for you to subscribe for @$0.70 = $10,164
~ You do not have to take up your full entitlement ie: you can subscribe for as many or a little as you want
Happy to be corrected by posters
Hope this helps
ps
@nicwix Seriously mate, there was no reason to be so condescending, the person was asking for a little help
~ for those getting on the high horse re: performance shares, as above, it is an adjustment to their service agreement contract. Bit like asking you to take a pay cut in your current job ~ would you. I have previously made it known that I do not agree with Performance Shares as the trigger points generally are too easily achieved. IF Anderson's hits his 250,000oz gold production per annum, if he gets the Morila there, he can have the Performance Shares.
