George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
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Bluetiger “it gets 4D off AIM and onto NASDAQ”.
Not quite. We will remain listed on AIM, it’s a dual listing.
Its a cash raise and NASDAQ listing for UK 4D to become US 4D (newco). The ratio of the reverse in is 8:7.5 so 4D US gets a 7% discount - probably to reflect costs to the US side. There is no premium being paid to 4D - well hardly anything - but it gets 4D off AIM and onto NASDAQ where money vs results vs valuation is currently better for shareholders. Obviously results etc are needed to drive the valuation, but I definitely think its +ve. Also if one of the big US pharmas do a deal then the US investors will be all over 4D US - and I guess thats what they are taking the US listing for - emphasise guess.
Blue.
Thanks both, glad there is substance to the choice of description - good!
Viper's link shows there is a change in entity that may interest others. I'll copy for readers below.
It seems like good news IMO for reasons the DDDD CEO expressed, particularly exposure in the US market. I'll vote for it.
GLA
from yahoofinance link above
At closing, LOAC will merge with and into 4D Pharma BVI Limited ("Merger Sub"), a wholly owned subsidiary of 4D pharma plc, with Merger Sub continuing as the surviving company. At the effective time of the merger, each of LOAC's ordinary shares issued and outstanding prior to the effective time of the merger (excluding shares held by 4D and LOAC and dissenting shares, if any) will be automatically converted into the right to receive certain per share merger consideration (as defined below), and each warrant to purchase LOAC's ordinary shares and right to receive LOAC's ordinary shares that is outstanding immediately prior to the effective time of the merger will be assumed by 4D pharma and automatically converted into a warrant to purchase ordinary shares of 4D pharma and a right to receive ordinary shares of 4D pharma, payable in 4D pharma ADSs, respectively. The per share merger consideration will consist of 7.5315 ordinary shares of 4D pharma, payable in 4D pharma ADSs (each ADS representing 8 ordinary shares), for each issued and outstanding ordinary shares of LOAC immediately prior to the closing.
So they have been set up as an investment vehicle with cash.
They merge with 4D, we get their cash and Nasdaq listing, they get a minority stake in the business
Valuation is at 110p, I like a placing which is usually at a discount they are effectively paying a reasonably significant premium for their stake (versus yesterday SP)
- Gives a great springboard for next stage, brings US investors and listing on board, everybody wins
This is much, much, much better than a typical placing would be
The below may clear it up a bot -
https://finance.yahoo.com/news/longevity-acquisition-corporation-announces-signing-060000354.html
RNS has good news IMO but just trying to understand this - what is planned exactly - its a placing not a merger isn't it?
Merger is that combination of businesses on the basis of equality that rarely happens where neither is boss, neither acquirer, neither continue trade in their former top entities eg Exxon & Mobil
How does this RNS work?
Correct this understanding please -
the corporate entity DDDD continues trading, Longevity acquires 13.1% control, $14m cash is injected.
Does DDDD have any stake in LOAC? - no, do shareholdings in LOAC change? - no. How is LOAC merged? - it isn't
So is this a placing of 13% to LOAC by another more palatable name?