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.
