Ann: Tawana & Alliance to Merge and Capital Raising & SIA, page-7

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lifeguard22

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05/04/18

13:55

Post #: 32243584
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Originally posted by lifeguard22 ↑

Wow. This is a pretty darn good idea. Lower admin, better synergies, well funded and a clearer pathway forward for both entities. The fine print stacks up (still working my way though it) but at first read it looks pretty good. They'll end up with:

TAW: $20M underwritten placement + $5M conditional non-uw placement
Alliance: $25M us placement + $7.8M non-uw to Burwill

= $57.8 Million dollars

Placements conducted at the following discounts to 5-day VWAP
TAW: 10.2%
AMAL: 9.7%

Now, there might be some contention about the above, and disagreement that it's a good deal as the placement is run at a discount etc. I really don't think that it is going to matter. A few reasons - placement to longer-term parties etc - could be considered, but here's a simple one:

Page 6 - "Benefits for TAW" Exposure to Singapore market, where Alliance is the only lithium producer listed on the SGX

I would argue that the novelty of that claim (alone) will push the price far beyond any placement discount.

I will defer to those with far greater knowledge, so look forward to what @binwood and others have to say.

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To add (from page 8)

Offer Value:
i) Each TAW Shareholder to receive 1.10 Alliance shares for each 1 TAW share held.
ii) Implied offer value of $A0.370 per Tawana share for a total equity value of $215M

TAW Price at posting: 45.5¢ Sentiment: Buy Disclosure: Held
10 Upvote

0 Great analysis

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Ann: Tawana & Alliance to Merge and Capital Raising & SIA, page-7

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