Demerger process, page-36

Another company Metalstech MTC announced a few days ago it was spinning out it's lithium assets. A much smaller company than FFX but also has gold + lithium prospects. Their share price went from 12c to 17c the day prior to the trading halt (leaky ship), then closed at 20c after the announcement, so up 60% overall.

They followed the same format as FFR.
They plan to issue 22m free shares fo MTC holders on a pro rata basis, then do an IPO issuing a maximum of 50m shares to raise up to $10m with $2m of that allocated as a priority for existing shareholders.

I think the main interest to us in these spin-outs is the format & time it takes.
It seems to me the only reason FFX was unable to lay down the terms of the demerger straight up like MTC & FFR was because we are seeking partners etc from our data room process. FFR & MTC put a valuation (with wiggle room by IPO take up) on the spin-off entity on day 1. The 20c in MTC's case will be subject to what the market thinks when it lists.

Our demerger will take longer, when they post the prospectus to FFX shareholders to vote on, it will need to include the specific terms (including partnerships etc) as per the MTC, FFR and all other demerger prospectus'.

That means before we vote, we'll need to know what % shareholders will be allocated, what % our partner will get and the terms of that allocation. After that they might do a public offering, hopefully with priority to us, to raise more $$.

This is a longwinded way of saying our demerger will take longer than say FFR's 3 months, however we'll know the terms of the demerger (partnerships etc) well before we get that lithium Co share allocated to us. Once the terms are known, the market can rate or rerate the FFX sp based on what it thinks. Hopefully it will be positive like it was for MTC. When Lithium co actually starts trading, hopefully there'll be another rerate like there was for FFR's offshoot.