Hey mate.
In my understanding, we will continue to trade on the ASX under the same ticker code. Nothing changes. Here's what I believe will happen.
A company called Critical Minerals will trade on NASDAQ and EUR will basically own a percentage of that company. The valuation of the company on NASDAQ will dictate the overall value of EUR on ASX.
The listing valuation of Critical Minerals and EUR's holding will be heavily influenced by "redemptions" of common stock of Sizzle by Sizzle shareholders. From the documents lodged with the SEC, it looks like the value per common stock will be $10. This means holders of Sizzle stock will be offered $10 in return for each of their stock. Depending on the % of people that redeem their stocks, EUR's shareholding of Critical Minerals will be decided.
For instance, consider the following scenarios:
@ 25% Redemption, Critical Minerals will get $95M USD in cash. EUR's holding will be 81%
@ 50% Redemption, Critical Minerals will get $56M USD in cash. EUR's holding will be 84%
@ 75% Redemption, Critical Minerals will get $18M USD in cash. EUR's holding will be 88%
Now, should the redemption rate be high, like 75%, it would mean the cash available to the balance sheet is a lot lower. This would mean the company would have to raise additional capital by inviting more investors (PIPE) to pour in money for a stake in the company.
Let's say after all of this is sorted, the market capitalization of Critical Minerals ends up being $750M USD with EUR holding 80%.
In my understanding, 75 million shares will be issued for trading on NASDAQ using ticker code CRML at a listing price of $10 per share. EUR as an 80% stakeholder, will be trading on the ASX as normal. The value of EUR at this time should be 80% of $750M USD. This will be roughly $950M AUD. We currently have close to 1.4 billion shares on issue plus heaps of options. Fully diluted, we will have close to 1.9 billion shares on issue. So, a share price of 50c on the ASX could be the valuation on listing.
As you can see, a lot of this valuation will depend on the redemption rate and the decision to seek more capital from PIPE investors. Time will tell.
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