The Metalstech Ltd (ASX: MTC) share price is soaring today after the company released an update on its lithium spin-out plans.
Metalstech has set a date for its shareholders to vote on the spin-out, which would see the company’s lithium assets held under Winsome Resources.
If passed, Metalstech shareholders will receive 1 Winsome share – worth 20 cents – for every 3.5 Metalstech shares in their portfolio.
Right now, the Metalstech share price is 28.5 cents, 16.33% higher than its previous close.
Let’s take a closer look at today’s news from the lithium, cobalt, and gold exploration company.
Shareholders to vote on lithium spin-out
The Metalstech share price is soaring today after the company announced more news of its planned lithium spin-out.
As part of the spin-out, the company will be giving its shareholders $9 million worth of Winsome shares for free.
Metalstech’s shareholders will receive a combined 45 million shares in Winsome.
Shareholders will have the opportunity to vote for or against the spin-out on 4 October. Metalstech has already received indications of support for the spin-out from its major shareholders.
It has previously announced $3 million of Winsome shares will be included in a cornerstone subscription by Lithium Royalty Corp.
Metalstech has also previously stated Winsome’s initial public offering (IPO) will be valued at between $12 million and $18 million.
Lithium Royalty Corp has also paid Metalstech $6.65 million for a gross revenue royalty over the Cancet, Adina, and Sirmac-Clapier lithium assets.
Metalstech share price snapshot
Today’s gains included, the Metalstech share price has soared around 45% since the start of 2021.
It is also about 60% higher than it was this time last year.
At its current share price, the company has a market capitalisation of around $49 million. It has approximately 158 million shares outstanding.
The post Why the Metalstech (ASX:MTC) share price is rocketing 16% on Friday appeared first on The Motley Fool Australia.
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More reading
- Why the MetalsTech (ASX:MTC) share price is soaring 15% today
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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