Demerger, page-3

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MineralMaster

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28/09/21

18:44

Post #: 56414166
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Originally posted by benny211167: ↑

The reasons/ benefits of the demerger that has been promoted by The ISX Directors are:

- Provide a mechanism for ISX EU to list on an exchange other than the ASX so as to provide a mechanism to potentially raise capital and to allow shareholders to trade their shares if they can list on an alternative exchange.

- And to operate under EU regulatory requirements as ISX EU generates 98% of its revenues from that region.

My thoughts here are:

The fully owned subsidiary ISX EU already operates under the EU regulatory. This hasn’t hampered its ability to secure banking approvals ie UK and deepened its relationship with Mastercard etc. So I can’t see any real tangible benefit with the demerger on that front.

How does the demerger significantly improve the prospects of listing on an alternative exchange and raise capital ( at a favourable valuation) whilst the litigation is in play with ASX, ASIC and others?
The controlling interests and Board is essentially the same so I can’t see how this quasi separation of ownership into a foreign jurisdiction clears the air? The litigation doesn’t disappear and is still a major grey cloud over the company and it’s Directors.
Raising capital is in the same boat as any valuation of the EU entity will impaired until the legal action is sorted.

Thoughts?

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Whilst the sub is still joined to the Australian parent company there will be no real way of listing on another exchange.
This quarantines the litigation and enables the company to list elsewhere.

ISX Price at posting: $1.07 Sentiment: Buy Disclosure: Held
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Demerger, page-3

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