Ann: Trading Halt, page-21

Sorry but this just looks like more fees and retainers for GTT, disguised as the disposal of an asset

This is the exact same play that Hudson did, spin off assets into multiple small companies and drain them via corporate fees

https://hotcopper.com.au/threads/marquee-resources-yes-another-lithium-ipo.3123293/#.WFeRecgmKJI

Costs of the offer
The costs of the Offer, net of tax and GST, include legal, accounting, marketing and other costs associated with the preparation of the Prospectus and the issue of Shares.These costs are estimated to be $385,000 plus GST.

Director fees
•Mark J Ashley (Non-Executive Chairman) – A$60,000
•Charles W Thomas (Executive Director) – A$60,000
•Jason Bontempo (Non-Executive Director) –A$36,000

Freebies

9,000,000 Options and 125,000 Shares will be issued to the Directors on successful completion of the IPO. The Options will be exercisable at 30 cents any time within 3 years after their issue date.

4,125,000 Shares will be issued as part of the Broker Pool.

SOC Shares

All Shares in the Company as at the date of this Prospectus are held by Sovereign Gold. The Shares held by Sovereign Gold are expected to be escrowed for two years following admission to ASX.

Now with all the above taken into account, have a look at the capital structure-:-

SOC currently own the asset, have spent $M+ on consultants etc, and after IPO will hold just 2.25M shares. Yet GTT are gifted 4.125M for doing the IPO ?

On a 20c raise, does GTT's share now equate to $800K+, in addition to corporate fees, would be $1M+ - anyone feel free to correct me if I'm wrong here.

Yet SOC receive $500k in stock, after owning the asset originally and spending however much they have ...



How does SOC benefit from this at all ? They cannot sell any stock for 2 years