Not more than the total assets but ... .. .. .. ...
Market Update, 28 May 2024 "The outstanding financials statements, which are still undergoing audit prior to being lodged, may likely report a deferred tax liabilitywhich is more than the current cash holding of Firefinch. A component of the the deferred tax liability will likely reflect the potential tax liability which could be incurred by Firefinch in relation to an in-specie distribution of the Leo shares to shareholders (absent a favourable tax ruling as discussed below)."
Also from the same update;
Following the demerger of Leo Lithium in June 2022 Firefinch retained a 20% equity stake which was subsequently sold down in July 2022 to 17.6%.
A sale of the Leo shareholding may likely result in a capital gain for Firefinch and an amount of tax payable.
Be really good if someone could explain this, given that the shares sold where the non escrow and those that the Company paid $20m for. How does buying $20m LLL (@ $0.70 per share) and selling them 9 days later for $12,893,000 equate to a Capital gains debt?
@WoodySpoon Fault of the Company for releasing announcements that are ambiguous and contain speculative statements .. .. ..
Preparation of the mind
FFX Price at posting:
20.0¢ Sentiment: None Disclosure: Held
