Merger: Yes or No, page-20

Yes....exchange risk runs both ways with foreign investments but I'm just comparing the post situ as opposed to where AKE was headed prior to announcement. Also alerting people to the fact that if interest rates are topping out in the US then the dollaroo will increase against the greenback. The dollaroo at the moment is very low and the cycle is turning in my opinion. This may impact adversely on the CDI price so just be aware. In other words we not only have to consider the actual stock price movement of Newco but also the exchange rate effect for local CDI holders.. Not a big deal. CDIs will always trade on the ASX as a derivative value of the exchange adjusted NYSE price. You will find the Aus market will be a convenience shell for retailers to trade CDIs without "worrying" about owning US stocks without a US account.. This is typical of these types of M&A to get the vote across the line for the Aussie shareholders. You may ask the merger partners why they are not opening a dual listing on the ASX. The reason is the big market is the US market with its liquidity and in particular capital raising exposure. AKE will contribute majority "ownership" but will be the junior partner imo. You can if you want open a Pershings account on the NYSE to enable trading any US stock but you'll find the brokerage higher. Imo the Aus market, with its imputation system and ease of operation for us, is a better bet. However, I am sure behind the scenes discussions are positive for this to go ahead as there are many advantages for all parties if the Li market holds up and the envisaged organic growth for Newco happens. AKE has jumped into the big league and discussions with the large shareholders have already ensured the votes for both companies will get the merger across the line. So don't worry, there will be volatility over the next month or so and opportunity will present. The bottom line is that if you believe Lithium has a future then this merger is a gateway for Aus shareholders to gain exposure at the top end.