The early Nasdaq trading successes of Critical Metals Corp. (CRML), the recent union of European Lithium Ltd (ASX:EUR, OTCQB:EULIF) and Sizzle Acquisition Corp, point to potential added value for shareholders of European Lithium.
On the most recent Nasdaq trading day CRML surged more than 26% to close at US$13.03 during the day with turnover equaling at least A$1 million.
This valued EUR’s 83.03% stake at more than A$1.3 billion, however, Martin Place Securities’ Barry Dawes said this was yet to be reflected in EUR’s current share price of around A$0.078.
Dawes said that with a current market cap of US$1.064 billion and the trading successes of CRML, EUR shares should be at least five times higher than current levels.
He said the pass-through value of the CRML shares to EUR alone should represent approximately A$0.75 fully diluted.
Source: Martin Place Securities.
Critical Metals Corp is poised to advance the construction and commissioning of the Wolfsberg Lithium Project in Austria, which EUR has bought to a pre-development level.
The new entity has inherited EUR’s ambitions to become a pivotal supplier in the lithium-ion battery supply chain across Europe with Wolfsberg to play a central role.
At the time of the Nasdaq listing, EUR chairman Tony Sage said: “With access to US capital markets and funds raised in the process of the listing, we believe that Critical Metals is well positioned to become a key supplier for the lithium-ion battery supply chain in Europe.
“Critical Metals’ success as a Nasdaq listed company is also expected to create a significant increase in shareholder value for EUR shareholders.”
Settlement welcomed
Also providing optimism for EUR and its shareholders today is a settlement between the APL and Okewood Pty Ltd, which has seen EUR shares and options returned to Okewood, a company in which the EUR’s executive chairman Tony Sage is a director.
The EUR chairman has described the removal of this potential overhang as being “very positive”.
Sage said: “It's great news that a settlement was reached between Okewood and the APL which has returned control of the EUR shares, performance shares and options back to Okewood.”