Details from the RNS20 May 2021 12:43
From the RNS Number 4 - Outlook :
They are unlocking the value of the assets which they deem undervalued this being the (Greenland Projects) which have three assets
1. Amitsoq (graphite)
2.Thule Black Sands (ilmenite)
3.Melville Bay (iron ore)
They know this will require heavy dilution to fund it and considered two options:
1. Joint venture with third parties
2. IPO to Fundraise the secured capital
Option 1: There is no guarantee that they would be able to conclude joint ventures on acceptable terms.
Option 2: the Alba Board has determined that the best way to unlock real value in our Greenland assets is to divest the Greenland Projects into a separate vehicle which, subject to regulatory approval, will be admitted to trading on AIM ("Greenland Listco"). It is intended that Greenland Listco will acquire the Greenland Projects (see Table 1 below) for shares and simultaneously undertake an IPO (Initial Public Offering) fundraising to secure the necessary working capital to fast-track the development of the Greenland Projects.
As above you can see option 2 is the best option and the best interest of the shareholders, we are not getting diluted and still own the company which will be funded separately without dilution from our end. The alternative would have been a rights issue, again this would have further diluted the shares.
Everyone please read the RNS again, this looks like a good deal, just need to be patience and we will get there.