Sigma Lithium (TSXV: SGML) this morning announced a bizarre move. The company, despite reporting that it is has entered “contractual and detailed structural negotiations” with groups related to its strategic review, has elected to list its subsidiary Sigma Brazil on both the Nasdaq as well as the Singapore Stock Exchange.
The listing is said to help attain “optimal structural flexibility and maintain competitiveness of the process,” and the company expects it to maximize shareholder value if the alternative selected under the ongoing strategic review only involve Sigma Brazil.
Listing of Sigma Brazil, which as of the most recent financial statements was wholly owned by Sigma Lithium, comes despites Sigma Lithium already being listed on the Nasdaq. The subsidiary currently owns all assets of the company that are located in Brazil, which is believed to be substantially all of the firms assets, including interests in four mineral properties. Those properties consist of Grota do Cirilo, Sao Jose, Santa Clara, and Genipapo.
The company claims that in the event of an acquisition, all shareholders of both Sigma Lithium and Sigma Brazil would be taken out, and that the listing of its subsidiary, despite the need to sell off a portion of its operating subsidiary to investors, will not interfere with the conclusion of the strategic review.
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Sigma did not disclose what portion of Sigma Brazil would be sold off to facilitate the trading of its shares on two exchanges.
Sigma Lithium last traded at $35.75 on the TSX Venture.
Information for this briefing was found via Sedar and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
