General Discussion, page-772

They can't sell their stock for 6 months in any case but even then the reason why the stock dropped by 50% is exactly on that very low public holding, tightly held and the price was definitely artificially pushed up just a day before transfer to CRML from SZZL, there was no real reason to do it really, not sure why they did that.

Yes book value is there and they can't really sell it immediately, but still better than holding a billion dollar building, harder to offload in comparison, but yet similar companies are trading there, the market will adjust slowly.
Technically the company did not impute a value and asked the market to believe it (well it probably did initially with its injection valuation - but was voted in). The market seems to be implying so far that is what they believe CRML is worth, its been to $5 and up to $25, but always seems to come back and trade between the $11-12 (ie. $900m-1 billion range). the ASX however does not believe there is value in EUR's holding of CRML (yet).

Now EUR can sell and it would not cause the price to crater, that would be a really dumb move on the boards end to dump, it would be best to trickle to the market, even if they did double the average volume it would not crash the price. If you are a new holder who bought at $11.50, would you sell or wait, unless of course there was a crash.

Selling on market and paying dividends won't really crater the stock, they are stuck either way where as a major shareholder, EUR CANNOT sell the greater of 1% of outstanding shares or the average weekly trading volume of the last month in a 3 month period - rule 144 (3). On top of that the average volume has been about $1 million a day, so assuming a 1% over 3 months in a year, thats roughly 4% or $40 million of $1 billion, (I am using round numbers for ease of calculation), nothing much to crash the stock but provide more liquidity and more stability with more free float and some possibility to pay dividends.

But lets just assume CRML does crash say even 90%, thats still a $100 million (A$150m) market cap, though literally 0% chance to happen.
One way it may come down somewhat on a worse case basis is if they draw down the full $120 million facility, the equity line provider is not subject to the 144 (nor are any new investors) and they may just dump it, but why? They will stand to lose money, so it's in their best interest to maintain the price up there.

I am more keen to know what the sponsors would do post 180days, most likely sell as most SPAC sponsors usually do.

Again I am really uncertain why EUR took this route, assuming even if they wanted to raise capital for current projects, due to the above limitations as a major holderit is quite limited and now Tony and board who are shareholders too have seen their value in EUR crumble rather than have an enhaced value with new stock in CRML, which could have been distributed, this would hace seen EUR jump.

It may also be that the board is looking really far into the future and thinking of CRML paying cash dividends of which EUR will be the beneficiary and by extension the shareholders of EUR, however it is a really out there thinking as by the time they raise the amount of money in CRM for funding the mine etc, EUR would have been diluted quite significantly to perhaps 50% or even lower.

The point here is not on the fundamentals of the company but on why the EUR share price is performing as such and how they should have played it to give value to EUR shareholders. There should be a balance current and future economic benefit for the company and the shareholders, hence why I think a 50% distribution would have been the sweet spot for all stakeholders.

We should still see the share price go up though, but not to the levels we would have seen with an in-specie distribution or something similar.