Proposed Spin-out and In-specie DistributionIt is proposed that...

Proposed Spin-out and In-specie Distribution
It is proposed that Hawkstone will hold 40,000,000 shares in Diablo prior to the in-specie distribution being voted on by Hawkstone shareholders at a meeting to be convened in July 2021. At an initial public offering (IPO) price of $0.20, this implies a value of $8 million for Hawkstone’s shareholding in Diablo.
The in-specie distribution is conditional upon:
•Receipt of Hawkstone shareholder approval;
•A short-form prospectus being issued by Hawkstone to faciltate the in-specie distribution;
•The Diablo IPO being successfully completed; and
Diablo receiving conditional approval for listing by the ASX.
For the proposed IPO, Diablo will seek to raise $6.5 million via the issue of 32.5 miion shares at $0.20, and Hawkstone shareholders will have the right to participate in a $3.5 million priority offer in the ASX listing of Diablo.
Details of the spin-out timing will be announced to the market as they become available.