new zinc spin off: priority to ipo

GIR has announced that a new, 100% dedicated ZINC EXPLORATION company will be spun out to existing GIR shareholdes.

The float is likely to be made up the following way.

Market Cap will be around $6m. Approximately 60% of this will be held by GIR, and then will be given out to GIR shareholders via an in-specie distribution. GIR already have an OUTSTANDING track record with in-specie distributions, and this will be an absolute money spinner for shareholders.

Any remaining capital will then be issued out to the public via an IPO float, which will go for about 20cents. So you could easily expect the new zinc compnay to list at around 40 cents. Of this remaining capital, approximately 70% of it will be offered first to GIR shareholders as PRIORITY ENTITLEMENT, so the basic point is that unless you hold GIR shares, IT WILL BE VERY DIFFICULT TO GET A HOLD OF THIS NEW ZINC COMPANY ON THE FLOAT.

For those who doubt my words, do some research, and look at the way GIR spun-out RHI, PMH, and more recently UTO.

Do yourselves a favor, and look into this one.