The ASX is readying itself to welcome a new face today. Shares in Green Technology Metals Limited (ASX: GT1) are set to hit the market at midday AEDT.
The lithium explorer and developer is focused on its lithium-prospective Seymour Lake Project, Root Lake Project, and Wisa Lake Project. All the company’s projects are prospective for lithium and located in Ontario, Canada.
Plenty of eyes will be on Green Technology Metals to see how its share price performs following its initial public offering (IPO).
Let’s take a closer look at what interested market watchers need to know ahead of Green Technology Metal’s float.
Green Technology shares set to debut on the ASX
The ASX’s soon-to-be newest lithium share is readying to hit the market with an expected market capitalisation of between approximately $43 million and $45 million.
That’s on the assumption it will be trading at around its offer price of 25 cents per share.
Following Green Technology Metal’s $24 million prospectus’ offer, it will have up to 197.5 million shares outstanding.
The company had hoped to raise between $20 million and 24 million through its IPO process.
The funds raised through Green Technology Metals’ float will go towards its 3 lithium-prospective projects and their exploration. The raised funds will also help pay the offer’s costs and provide working capital.
Right now, Green Technology Metals has a 51% holding in its 3 projects. The other 49% is owned by Ardiden Ltd (ASX: ADV). The projects will be run by a joint venture between the 2 companies.
According to Ardiden, Green Technology has previously paid it $1.5 million to begin the joint venture. Additionally, as part of Green Technology’s float, it provided Ardiden with 9 million Green Technology shares and $1.75 million of cash.
The company now has 12 months to provide Ardiden with another $3.5 million with either cash or scrip. If it provides both tranches of shares and cash considerations, it will earn another 29% of the projects. Thus, Green Technology has the option to earn an 80% hold in its Seymour, Root, and Wisa projects.
The post Green Technology Metals (ASX:GT1) shares are about to hit the market. Here’s what you should know appeared first on The Motley Fool Australia.
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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