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20.0¢ firefinch limited

Now after reviewing the webinar, he does say FFX hold 20%,...

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Karl89

1,240 Posts.

1832

07/08/21

23:11

Post #: 55114226
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Originally posted by Karl89: ↑

People really seem to be getting tripped up on this. This is the simplified version:

1st
Goulamina aka Lithium du Mali S.A(LMSA)

2nd

mali lithium BV(MLB) owns 80% of LMSA
mali gov owns 20% of LMSA

3rd

Ganfeng 50% of Mali lithium BV(MLB)
LithiumCo 50% of MLB

4th

FFX will own approx 20% of LithiumCo

From here its guess work, though disclaimer, I wasn’t able to watch the latest webinar.

I think it would be unlikely FFX would supply LithiumCo with cash on spin out. If you look at the plan for that money, it is already locked away and spent.

I also think it’s unlikely they LithiumCo would take on more debt to pay the debt whilst in construction. I also hate to think we list then have to capital raise shortly after… it’s not exactly a strong company base.

it is far more likely it will come from Instro / soph/ retail.
My guess, which seems logical to me however has cause some to get quite cranky, is LithiumCo will launch with 50% ownership to current FFX holders, 20% to FFX company, 30% to new investors (with my money on Ganfeng being the largest holder).

A strong management team, Fully financed build, world class partner, 100% offtake deal, huge potential for exploration and stage 2 construction and money in the bank makes for an incredibly strong company that would see results day one of listing even with an entire plant to build

Also, they may offer prioritized shares to current FFX holders, though I think that demanding that, then also stating a company is weakened by lack of significant instro investment in fairly counter productive.

Expand

Originally posted by WoodySpoon: ↑

You must have worked hard to be that wrong all round Karl , hahaha

Expand

Originally posted by manny100: ↑

Listening to the reply Mike was quite clear that shareholders would receive an in specie distribution of about 80% (around 16 min mark). This indicates FFX will hold around 20%.
Seems fairly straight forward.
Makes sense not to do an IPO of a %. Its better for the SP of FFX to have none available to non holders. We all know what Brokers do to the SP when an allocation is about to be made and they want some of the action for their clients.
Keep the availability totally in house and watch the SP of FFX go for a run once more information about the spin off is available.
." In specie is a term commonly used in business. It is mostly used in the context of the distribution of assets or that of the repayment of loans. A company or corporation, therefore, might distribute the securities which it owns to its shareholders or stockholders. This is done without first converting the securities into cash."

Expand

Now after reviewing the webinar, he does say FFX hold 20%, existing holders of FFX get the remaining 80% and you must be a holder to get a stake in LithiumCo. that would be a fantastic result for current holders.

I’d say if that’s the case, there would be a credit raise within the first 12 months open to holders / instro. Up side of that is the new lithium company can take life and find true value before the raise. Obviously all this would be budgeted into the opening register which, even after the raise, would be low.

FFX Price at posting: 43.0¢ Sentiment: Buy Disclosure: Held
4 Upvote

0 Great analysis

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