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Be the first with the news that moves the market- OreCorp’s (ORR) wholly-owned subsidiary, Solstice Minerals, raises $12 million in its initial public offering (IPO) after shareholder approval for demerger
- OreCorp shareholders will receive one Solstice share for every 9.94 OreCorp shares held which are expected to be issued on or around April 21
- Proceeds from the IPO, together with Solstice Minerals’ $5 million cash balance at demerger, will provide Solstice Minerals with $17 million in cash to conduct its activities
- Solstice is working to satisfy the remaining conditions with ASX, targeting commencement of trading on May 2
- ORR shares are steady, trading at 75 cents
OreCorp’s (ORR) wholly-owned subsidiary, Solstice Minerals, has raised $12 million in its initial public offering (IPO) after shareholder approval for demerger.
The IPO, comprising of a pro rata priority offer and shortfall order, received strong support from OreCorp shareholders and new investors, which caused the IPO to close oversubscribed.
OreCorp shareholders will receive one Solstice share for every 9.94 OreCorp shares held which are expected to be transferred under the in-specie distribution on or around April 21.
Proceeds from the IPO, together with Solstice Minerals’ $5 million cash balance at
demerger, will provide Solstice Minerals with $17 million in cash to conduct its activities.
“This is an exciting opportunity for everyone involved in transitioning Solstice Minerals into a standalone WA focussed exploration company,” OreCorp CEO and Managing Director Matthew Yates said.
Solstice Minerals has received its conditional admission letter from Australian Securities Exchange (ASX) advising that it will admit the company to the Official List of ASX, subject to satisfaction of certain conditions.
The company has also received a draft class ruling from the Australian Taxation Office (ATO) in relation to the demerger tax relief.
The final ATO ruling outlining the implications for certain shareholders as a result of the demerger is expected to be published over the coming weeks and shareholders will be advised in due course.
Currently, Solstice is working to satisfy the remaining conditions with ASX, targeting commencement of trading on May 2.
ORR shares were steady, trading at 75 cents at market close.
