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Its a very bad guess. You are effectively valuing the lithium...

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JungleJim1

384 Posts.

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09/04/21

14:52

Post #: 52361387
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Originally posted by Gwaihir: ↑

I think it's more likely to be 1 for 12.5 as the in-specie share allocation.

Fully diluted, FFX has 815m shares, and a 1 for 12.5 allocation of in-specie shares in the new Lithium company equals 65 million shares.

Then they will probably do an IPO, creating something like another 50m shares @ 20 cents for $10m dollars.

With some shares and costs also being given to the brokers for running the spin-out and IPO, the new company is likely to start with over $9m dollars in the coffers and (approximately) 120m shares on issue.

Like everyone else though, I'm only just guessing.
It will be interesting to see what eventually transpires here.

Gw

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Its a very bad guess. You are effectively valuing the lithium company at $25m. A ridiculous outcome and certainly not acceptable to the BOD. Even Euroz value the lithium at $60m. And that's not even the starting point. With a DFS NPV at over $1billion the lithium company should be valued at around half if not a little more.

FFX Price at posting: 24.5¢ Sentiment: Buy Disclosure: Held
8 Upvote

0 Great analysis

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