Cygnus Metals (CY5 AU): 4th Sept Vote On Central Asia Metals' Scheme

• Back on the 2nd June, critical metals play Cygnus Metals (CY5 AU) entered into a Scheme with AIM-listed Central Asia Metals (CAML LN).

• CAML is offering 0.06 new CAML shares for each Cygnus share, backing out a A$0.176/share indicative Offer price, or a 60% premium to last close. Clean Scheme.

• The Scheme Booklet is now out, with a Scheme Meeting on the 4th September, and expected implementation on the5th October. The IE (Grant Thornton) says “fair & reasonable“.

Cygnus is illiquid - look away now if that is not your bag.

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The Trade:

• Trading wide given the cross border nature of the transaction & Cygnus’ illiquidity.

• The Panel application did no favours. Some reader concerns on the “50% by number” vote.

• You can hedge the CAML’s stock; and the position will auto close once the deal completes and stock is exchanged. Currency exposure can be hedged as well.