Hi RB I enjoy your posts much appreciated One question if I...

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1greenhorn

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18/11/22

20:53

Post #: 64865125
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Originally posted by Red Baron ↑

I posted this on the Leo thread by mistake, will get it removed

Very lucky the asx didn't allow the escrow period to be relaxed - good chance FFX would squander the money on Morila & we'd be left with nothing.

I find it interesting in the Nov 3 update they talked of a "...reset the Company for a new chapter." and "...turn our minds to look for new
opportunities that will deliver value for our shareholders.."

2 weeks later in the Nov 16 Chairmans letter there is no mention of new ventures but "....we preserve the value of the existing Firefinch Limited assets, being the cash and stake in Leo Lithium Limited" and ".....the potential return of cash to shareholders and the best way for Firefinch Limited shareholders to benefit from our investment in Leo Lithium Limited."

To me the language has changed from new ventures, to returning cash to shareholders and relying on the Leo investment.

What we do know is Morila is closed - no more
They tried to sell the asset (assume they mean Morila) to no avail
ASX won't let them sell the escrowed shares for another 18 months
If they do return cash, and keep working capital to start a new venture, the cash return will be minimal.
IMO the asx will not allow them to stay listed if they have no business to carry out
Firefinch or its subsidiary owns the escrowed shares. Although the shares can't be sold, the company can be sold, with the escrow period still applying to the new owner.

I've said it before, but to me they are setting this up for a sale of the company
IMO that is the best outcome for shareholders, at least we get our cash back now instead of in 18 months time.

What I would not like to see is an agreement to sell Firefinch at a set amount, then have it drag out for 6 months & in the meantime Leo has doubled in price. IMO any sale would have to be based on the market price of Leo at the time of the payment, with a timely distribution to FFX shareholders.

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Hi RB
I enjoy your posts much appreciated

One question if I may,if FFX was sold on can the buyer claim any of the capital losses that have occurred during our failed project, or did we blow this opportunity when the project was written off

Apologies in advance if this is a stupid question but if the loss can be claimed this would make the sale of the company way more attractive

Cheers GH

FFX Price at posting: 20.0¢ Sentiment: None Disclosure: Held
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0 Great analysis

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