I believe most people here are thinking about the raise the wrong way..
FFX would likely need to raise $ again post de-merger. They are 100% leveraging the sentiment from the lithium business to continue to fund a ramp up in the gold business and guarantee its success. If the gold business is valued at roughly $300m or so, with 1b shares on issue the stock price post de-merger would fall to 38c (inclusive of 20% holding in LLL valued at $80m, assuming $400m MC for LLL) and the gold business would be raising at circa 30c for more than double the dilution to achieve the same result.
With a long term view, this is a good result for anyone who is wishing to retain their FFX shares post demerger (as any future raises would have resulted in more dilution). Obviously not ideal if you planned to sell FFX post de-merger, as you would rather see FFX raise after you had sold.
FFX Price at posting:
75.5¢ Sentiment: Buy Disclosure: Held
