Are we all happy with ADV spinning off its Lithium assets to GT1?

Are we all happy with ADV spinning off its Lithium assets to GT1?

I’m happy to receive constructive criticism, I like hearing both sides of an argument and the grey in the middle too.

End of trading first day of GT1 listing values it at $75M market cap (10nov21); on the same day ADV finishers with $28M market cap.

Let tell you of MLM and its spin off/sell off of Sconi (cobalt-nickel-scandium) assets to AUZ without shareholder approval around 2016-2017.

Long story short

AUZ share price goes up 10 fold (Disallowed)

MLM share price drops by half

MLM BOD continues to initiate mergers/ventures that further risk destroying shareholder value of MLM, that results in the majority of shareholders successfully removing the MLM BOD & replacing the BOD.

Now back to ADV & GT1

ADV with Gold exploration, Jumbo graphite flakes & Lithium had a Market cap $28M.

ADV with Gold exploration, Jumbo graphite flakes (without Lithium) still has a Market cap $28M.

GT1 with ADV’s former Lithium assets is worth $75M at the end of first days trading.

An asset valued at $75M was realised by a separate BOD & marketing spin.

The ADV BOD were unable to add this $75M in additional value to ADV with its Lithium assets themselves.

The task of any BOD of a publicly listed company is to increase Net Present Value in the form of increasing Market Cap for shareholders.

How has this deal increased the Net Present Value in the form of increasing Market Cap for ADV shareholders?

Did all shareholders of ADV get shares in their Priority GT1 IPO?

Did all shareholders of ADV get free shares of GT1?

Was the money received by ADV from GT1 scalable in terms of percentage ownership of GT1 dependent upon successfully increasing Market Cap/Share Price of GT1.

E.g. could a deal have been done for ADV to gain more shares if GT1 share price went 20%, 30%, 40%, 50% etc. above the IPO listing price?

Was the money received by ADV from GT1 scalable in terms of dollar value of GT1 dependent upon successfully increasing Market Cap/Share Price of GT1

E.g. could a deal have been done for ADV to gain additional bonus cash payments (not just value from increasing GT1 share price for ADV owned shares in GT1) share price went 20%, 30%, 40%, 50% etc. above the IPO listing price?

Could a deal have been done for ADV to receive royalties from each tonne of Lithium ore sold by NT1?

I feel like these opportunities were missed by the ADV BOD to increase the Net Present Value for ADV shareholders.

I’d like to thank the posters below for their help making sense of this

Caromb15 Post #: 56357236

1. ADV is selling 51% of the Li projects for $1.5m cash now, and $1.75m cash on listing and $2.25m of GT shares.

So 51% of the Li projects sold for $5.5m.

2. GT is raising cash by selling 80m shares @ $0.25, raising $20m (but $3.25m to be paid to ADV). So the assets of GT can be evaluated as $21.75m ($16.75m cash plus $5,5m) for minimum 181,500 shares at 25c, and so market valued at $43.5m.

Billy Goats Gruff Post #: 57482639

9,000,000 GT1 shares at 25c/ share ($2.25m)

At current indicative opening price (40c), these are now worth $3.6m