Firefinch Ltd (ASX:FFX) continues to move its demerger forward with Leo Lithium closing an Initial Public Offering (IPO) oversubscribed having raised A$100 million.
The pro-rata and shortfall offer was strongly supported by FFX shareholders along with high-quality institutional investors.
More than 90% of the offer was allocated to existing Firefinch shareholders.
Firefinch took its full A$20 million allocation under the offer, as part of the IPO and all conditions for the demerger have been satisfied.
With the demerger fully approved by shareholders today, FFX 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.
"Important milestone"
Firefinch managing director Dr Michael Anderson said of the demerger: “We are pleased to have reached this important milestone in the separation of our gold and lithium assets.
"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.”
Leo Lithium to list June 23
Leo Lithium shares to be allotted under the IPO are now anticipated to be issued on Thursday, June 16, 2022, and it is expected Leo Lithium will officially hit the ASX boards on Thursday, June 23, 2022.
Leo Lithium managing director Simon Hay said: “We are delighted with the strong support shown by Firefinch shareholders for the Leo Lithium IPO.
"We look forward to the commencement of Leo Lithium’s life as a separate listed vehicle.”