Aim-listed Atlantic Lithium has announced the company’s ASX dual listing offer, which opens on August 23.
The company on August 15 lodged a prospectus with the Australian Securities and Investments Commission setting out the terms of the ASX offer, which is an offer to acquire up to 22.9-million shares at a price of A$0.58 apiece.
Atlantic advises that it has received firm commitments to subscribe for shares equal to the full amount to be offered under the prospectus. Commitments were received from a range of Australian and Asia-Pacific institutional and professional resources investors.
Canaccord Genuity (Australia) is acting as lead manager in respect of the ASX offer.
“Listing on the ASX enables eligible investors the opportunity to invest in Atlantic Lithium, including through the ASX offer which is announced today. The company will benefit from a broadened shareholder base and raised awareness of its plans for the industry-leading Ewoyaa lithium project [in Ghana], at a time when demand for lithium continues to be strong.
“Being an Australian company with its headquarters in Australia, the ASX listing also enables close communication with Australian investors.
“The ASX market itself has seen a growing interest in green commodities of late, in line with the global transition to a lower carbon future, and we have seen the valuations of many companies involved in the lithium supply chain benefit as a result. We believe that listing on the ASX will help support a favourable valuation of the company and its assets,” says executive chairperson Neil Herbert.
The ASX offer is being undertaken by way of a sell-down by certain shareholders of the company, rather than an issue of new shares.
A new, special purpose vehicle called Atlantic SaleCo has been established to facilitate the sell-down. Atlantic Lithium and SaleCo have entered into agreements with those existing security holders who wish to participate in the sell-down, including a number of option holders who will exercise their options and sell the resulting shares as part of the ASX offer.
Accordingly, although the sale of the shares under the sell-down itself will not raise any cash for the company, Atlantic expects to raise about $4.5-million from the exercise of the sell-down options.