CY5 cygnus metals limited

Ann: Cygnus to raise $6.3m to advance Pontax Lithium Project, page-27

  1. 682 Posts.
    lightbulb Created with Sketch. 471
    I'd say you don't understand flow through shares. Here's the math and theory behind it.

    CY5 issue 8677817 shares @ 73c = $6334806 to a Canadian investor.
    The Canadian investor can claim an immediate tax break of 10% (to keep the math simple) which gives them $633480.60 to write off.
    The Canadian investor then donates the shares to a Canadian charity to claim another immediate tax break of 10%, which gives them another $633480.60.
    The Canadian investor now has a tax claim of 2 x $633480.60 = $1266961.20

    The Canadian charity then effectively sells the shares back to CY5 at 35c because they need the cash.
    CY5 raised $6334806 initially then bought the shares back for 8677817 x 0.35 = $3037236, leaving CY5 in a net position of $6334806 - $3037236 = $3297570. Effectively the same as raising at 73-35=38c.

    CY5 then sells the 8677817 shares back to Australian investors at the same price they paid the charity i.e. 35c to raise 8677817 x 0.35 = $3037236.
    CY5 now has $3297570 from the Canadian raise plus $3037236 from the Australian raise for a total of $6334806.

    So the raise was conducted at 73c, but Oz investors only had to pay 35c because other 38c came from Canadian tax relief.
 
Add to My Watchlist
What is My Watchlist?
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)
Last
8.8¢
Change
0.002(2.33%)
Mkt cap ! $93.56M
Open High Low Value Volume
8.6¢ 8.9¢ 8.6¢ $9.862K 111.7K

Buyers (Bids)

No. Vol. Price($)
1 200000 8.6¢
 

Sellers (Offers)

Price($) Vol. No.
8.8¢ 99919 1
View Market Depth
Last trade - 15.56pm 10/07/2025 (20 minute delay) ?
CY5 (ASX) Chart
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.