Just got notification the IPO withdrawn by MWL (from Stake). Seems strange when they are about to ramp up production and list on the ASX.
IPO AND LISTING TIMING UNDER REVIEW WITHDRAWAL OF IPO PROSPECTUS
After careful consideration, Midwest Lithium Limited (“Midwest Lithium”, “Midwest” or the “Company”) has decided not to progress at this time with its previously announced initial public offering (IPO) via an ASX listing process (refer to Midwest prospectus dated 31 August 2023). Market factors have emerged since the Company began preparing for IPO; higher interest rates and new global conflicts have created a ‘risk off’ environment for the moment. The lithium market has also changed materially, with exchange traded funds such as the iShares Lithium Miners and Producers and spot lithium carbonate prices down, respectively, 30% and 50% since July. Despite our views on the positive trend for lithium and the unique merits of our projects, we do not believe an IPO in these circumstances is in the best interests of our existing and incoming investors. Therefore, the Board has resolved to withdraw its ASX IPO prospectus in favour of continuing to fund the Company’s projects privately, with a view to considering a potential IPO during 2024. NOTE FOR INVESTORS THAT HAVE APPLIED AND TRANSFERRED FUNDS Settled investor application monies are held in an independent escrow account with Automic Pty Ltd. • For investors who provided Australian bank account details with their application: monies are already being refunded to your account. Please contact the Company if the funds are not available in your account in 5 business days; • For investors who have not provided their bank account details or who paid from overseas: please complete the form on the last page of this announcement and Automic will process the refund following the receipt of this information; and • For investors who have completed the application and payment via their brokers: please contact your broker for further details. Midwest apologises for any inconvenience caused to IPO investors, and the Board thanks its current shareholders for their support in this decision as we advance the development of Midwest’s assets. IPO TIMING REVIEW AND PRIVATE RAISE As noted above, the Company intends to continue funding its projects privately, with a view to assessing listing options in early 2024. Midwest will therefore complete a private capital raise open to institutional and sophisticated investors, with funds used to exercise purchase options on certain assets and progress technical work. Interested parties may contact the Company for further details.
