Power Nickel Inc (TSX-V:PNPN, OTCQB:PNPNF) announced that it has secured shareholder and court approval for its plan to spin out the Golden Ivan property in British Columbia and certain Chilean exploration assets.
Power Nickel believes the spin out of these assets will create value for shareholders in two main ways.
“First, we believe the spin out properties have significant unrealized value that is lost in the current structure. We believe Chilean Metals can advance our key projects in Chile and in British Columbia, and create considerable value that is not being seen as investors correctly focus on our exiting polymetallic discovery at Nisk,” the company said.
“Secondly, we believe the spin out will pose challenges to the naked short sellers that have been selling our shares and not closing their share sales by delivery of the stock.”
It added that Power Nickel continues to take action against “improper trading activities” such as “possible naked short selling and other manipulative actions to lower share prices.”
“It has been a great year at Power Nickel; we have made major gains and yet we feel the best is yet to come,” the company said. “We believe the spin-out and our ongoing exploration success will make 2025 even more exciting than 2024.”
Nearly 97% of Power Nickel shareholder voted to support the spin-out arrangement, which involves distributing shares in a new entity, Chilean Metals to existing shareholders.
The Supreme Court of British Columbia granted final approval last month.
Final TSX Venture Exchange approval is pending, and the arrangement is expected to take effect by the end of January 2025.
Shareholders will receive one new Power Nickel share and 0.05 Spinco shares for each current Power Nickel share held.
Power Nickel, focused on the Nisk polymetallic project in Quebec, will continue to list on the TSXV in Canada, the OTC Market in the United States, and the Frankfurt Stock Exchange in Germany.
The spin-out company will not be listed but will be a reporting issuer in British Columbia and Alberta.