@WoodySpoon system wouldn't let me reply to your post 60298445
You're quite right - I didn't write that very clearly.
Having slept on that information, I'm 99% certain that issue of shares for which FFX paid $9.3m, was the use of the funds they'd previously set aside to prevent dilution by the Entitlement Offer (EO)
On March 15 when those shares were issued our SP was 79.5c
I can easily see our SP going up 20% (96c) by the time we issue the Prospectus for the EO (assuming after the meeting).
If that was the case, I'd expect the LLL shares to be offered at $2.40 ($2 + 20%)
Maybe a bit less if you think some of that appreciation was due to the Gold side.
With the $9.3m payment to Leo, it sounds like they are aiming to raise the $50m (we previously predicted)
If the IPO is done at $2.40 (using above example), for FFX to maintain it's 20% they'd need to raise $44.5m at $2.40 in the EO. (4.63m x 4 x 2.4)
All told raising circa $53m
It is very clear (to me at least) they paid this $9.3m in return for 4.63m Leo shares to prevent dilution from the EO - which they had previously slated. They did $9.3m instead of the expected $10m to allow for SP appreciation in the lead up to the IPO.
They aim to raise circa $50m
FFX will retain 20% of the in-specie distribution with the other 80% going to FFX shareholders after the Meeting, then after the EO, FFX will still retain 20% of Leo due to the above purchase of LLL shares.
On March 15 when those shares were issued, we had a market cap of $935m
Just for demonstration purposes, if they thought $550m of that was Leo, the remainder for FFX
Adding in the $50m raised, $600m @ $2 a share = 300m SOI (275m +25m EO)
FFX retain 20% of the 275m shares = 220m LLL shares to distribute to FFX shareholders
1.178b SOI/220m = 5.35
You'd get 1 LLL share for each 5.35 FFX shares you own in the in-specie distribution
My ramblings might be in vain, as we'll probably find out early next week.
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