I agree, they are looking at the most effective way of returning assets back to shareholders.
Quite honestly, with the way the majority of retail shareholders were treated with the LLL return of capital via unfranked dividends, I would prefer if Firefinch was the recipient of the proceeds of the tranche 2 (if any) payments, before returning the LLL shares back to Firefinch shareholders.
My thoughts,
@abu with what has previously been discussed that there is a fair margin to return it back as a pure Capital Return on winding up the company, including the distribution of the LLL shares.
~ to jog memories, Firefinch Limited capital raised to the tune of $272,199,810
Ball park numbers for scenarios of a cash capital return / LLL share distribution.
One can only hope the same inventive accountants that buried the circa US$102 million loan to Morila SA that never appeared in the financials can jiggle a favourable return of capital!!
~ not everyone's circumstances are the same, but my financial advisor & accountant couldn't get my LLL shares transferred to my SMSF quick enough prior to the distribution of the unfranked dividend.
The calculation of 100% tranche 2 payment being returned does not include what the company's current cash balance is, nor takes into consideration of interest payments on the balance of the sale or the trailing royalty.
@Red Baron
re: Class ruling submitted by Firefinch October 2024 .. .. ..
When FFX submitted their request for a class ruling they still hadn't resolved and / or was aware of the outcomes of:
- the deferred tax liability; or,
- the treatment of the irrecoverable loans; or.
- notice of arbitration; or,
- sale of Morila; or,
- the details of the tranche 1 payment distribution.
Announcement in red text, IMO, would have had an impact of the ATO ongoing discussions, and if you look it wasn't until the
31st January 2025 that the sale of Morila was completed.
Point is, as much as this is frustrating and taking such a long period of time, the ATO couldn't possibly give a decision prior to ALL of the above being completed?
Include the time delays for shareholder approvals:
~ FFX shareholders to approve the $11.5 million contribution payment to LLL which also included the waiver of
~ LLL shareholders to approve the distribution of the sale proceeds
As you pointed out, LLL (and include FFX demerger) proceeded without the final ruling but I would suggest that this wasn't done with their fingers crossed it would all be ok, but more likely they had a "letter of comfort" (or the corporate version of) in the palms of their hands before proceeding.
Basically in the defence of Firefinch's Board, as the landscape keeps changing so will the timeline for a Class Ruling from the ATO.
I do note that the previous ASX announcements that were on the website are no longer available, and also note that the "Change in Substantial holding" announcement is also not available from the LLL announcements nor the ASX but was able to get it through the HotCopper link.
