advent to go to ipo , page-4

MrGann

The following is the latest (12 Aug) spin-off announcement by Chairman of BPH, (and MMR, Advent and Grandbridge (GBA)) Davis Breeze - in part:

"Invitation to participate - BioPharmica Share Purchase Plan
The Directors of BioPharmica Limited are pleased to announce the introduction of a Shareholder Share Purchase Plan (“SSPP”).
The Company would like to give shareholders the opportunity to maximise the benefits of their current
BioPharmica shareholding through the SSPP.
BioPharmica intends to seek an IPO for investee Molecular Discovery Systems on the Australian Securities
Exchange. Molecular Discovery Systems will be a company dedicated to the Anti Mitotic Drug Discovery
Development Program and the tumour suppressor gene HLS5.
Under a planned ‘spin off’ process, BioPharmica (ASX code: BPH) shareholders would receive a share
at no cost in Molecular Discovery Systems for every listed BioPharmica share that they hold five days
after the date of shareholder approval of the spin off.
This means that an eligible BioPharmica shareholder can participate in the SSPP and receive the same
number of shares (at no cost) in the new IPO of Molecular Discovery Systems. The spin off and listing is
subject to approval from shareholders and regulatory bodies.
Funds raised from the SSPP will be used for continuing research and development, commercialisation,
additional working capital, funding the new IPO and to meet anticipated expenses of the issue estimated at
$14,000.
Eligible shareholders can purchase shares, at a 20% discount to the weighted average price of the last 5 days
prior to the day on which the issue is made."

This style of spin-off would appear to be good for MMR holders; what confuses me a bit is why have MMR gone to the Norwegian Parento Group for advice on raising capital when it appears to be as easy as...perhaps Breeze is looking at the requirement for finance for capital works for the pipeline & associated works - stated as about $200M - after the anticipated 'Fish' (and/or other) gas discovery and the value of MEC goes to a stated "possible 170 times uplift in value" in the presentation.