Firefinch Limited’s (ASX: FFX) spin-off Leo Lithium Limited’s initial public offering (IPO) to raise up to A$100 million has closed oversubscribed.
Firefox proposed demerger of a number of assets is being undertaken by way of in specie distribution (demerger) into Leo Lithium Limited.
The IPO, comprising a pro-rata offer to eligible Firefinch shareholders, a shortfall offer and an offer to Firefinch, received strong support from Firefinch shareholders and high quality institutional investors, closing oversubscribed. Over 90% of the offer was allocated to existing Firefinch shareholders.
In addition, each Firefinch shareholder who submitted an application under the shortfall offer for less than $2,000 was not scaled back. Firefinch has acquired its full A$20 million allocation under the Firefinch offer, as part of the IPO.
All conditions to the Demerger, with the exception of Firefinch shareholder approval (to be sought at a general meeting to be held later today) have now been satisfied. Under the Demerger, if approved, the company will transfer Leo Lithium shares to eligible Firefinch Shareholders by way of a pro-rata in-specie distribution, on the basis of 1 Leo Lithium share for every 1.4 Firefinch shares, on Thursday, June 9, 2022.
Leo Lithium shares to be allotted under the IPO are now anticipated to be issued on Thursday, June 16, 2022, with admission to the Official List of the ASX and commencement of trading targeted for Thursday, 23 June 2022.
The entitlements of Firefinch ineligible foreign shareholders to Leo Lithium shares as part of the inspecie distribution will be transferred to a sale agent nominated by Firefinch, with the net proceeds of sale to be remitted to the ineligible foreign shareholders.
“We are pleased to have reached this important milestone in the separation of our gold and lithium assets. Subject to shareholder approval, the Demerger will allow Firefinch to focus its attention on the development of the world-class, multi-million-ounce Morila Gold Project, while providing our shareholders with exposure to the future development of Goulamina through our 20% retained stake,” Firefinch Managing Director, Dr Michael Anderson, said.
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