LIC & LIT DeepGreen Metals Investment Update (CDM )

Overnight DeepGreen Metals has announced its intention to list through a merger with
Sustainable Opportunities Acquisition Corporation (NYSE Code: SOAC). The combined company
will be renamed The Metals Company and is expected to begin trading under the NYSE ticker code
TMC.
Cadence Capital Limited (ASX Code: CDM) invested in DeepGreen Metals several years ago.
DeepGreen Metals was to list on the Canadian stock exchange at that time. This listing was
delayed for several reasons, but has now been replaced with a much larger intended listing on
New York Stock Exchange.
Our DeepGreen Metals investment, is approximately 2.8% of the portfolio, and is valued at the
weighted average cost of the most recent purchases made in FY2020. The proposed listing is at a
valuation substantially higher than our current valuation. The transaction reflects a pro forma
equity value for The Metals Company (TMC) of approximately US$2.9 billion and enterprise value
of US$2.4 billion. The recent raising of US$ 330 million was done at a price of US$10 per share. Our
investment is currently valued at US$1.38 per share. Upon listing this would equate to a
substantial uplift in Pre and post tax NTA for CDM shares. This transaction is subject to
shareholder and court approvals. Once the TMC shares are listed and trading freely we will value
this investment at market price.
Prior to this announcement CDM shares have been trading at a discount to Pre and Post Tax NTA.
Our weekly and monthly NTA announcements will not include the full value accretion of the
DeepGreen transaction until the proposed TMC listing.
A summary of the proposed merger transaction is available on both the DeepGreen Metals
company website or on the SEC website . We will keep CDM shareholders informed of the
progress of this listing through ASX announcements and monthly newsletter announcements

DYOR

i hold CDM

 

Yes & good jump in the share price today in a falling market.