While all eyes are on the ADN scrip exchange, MEP holders should remain aware of the residual copper, gold and base metal assets they will continue to own, set to become Breakaway Resources Ltd.
I attach considerable value to these - albeit spread across a very large number of shares. HC commenters gesture at a per share price of 2-5c on these. I anticipate a share consolidation - say, 1 for 5 or 1 for 10 for respectability.
The Bid Implementation Agreements says:
"Breakaway intends to apply for listing on the ASX (subject to receipt of necessary approvals) raising new equity through issue of a Prospectus."
"Andromeda is making available to Minotaur an amount of up to $4.0 million by way of short term funding for the purpose of funding expenditure within the Approved Budget and to seed Breakaway with up to $2 million (pre-costs of the IPO) on completion of the Demerger."
"... for the avoidance of doubt, all Minotaur Group tax losses remain with the Retained Group."
The is, ADN gets the tax losses, which they are more likely to promptly put to use.
The MEP 2021 AR says: "The Group has tax losses arising in Australia of $91,944,313 (2020: $88,621,639) that are available indefinitely for offset against future taxable profits generated by the Group. In addition the Group has $6,356,016 (2020: $8,049,531) capital losses available. These losses include $72,537,535 tax losses and $2,323,426 capital losses transferred by members to the tax Consolidated Group. The utilisation of these losses will be restricted to their available fraction."
Ash
MEP Price at posting:
18.0¢ Sentiment: Buy Disclosure: Held
