T A R G E T M A R K E T D E T E RM IN A T I O N
Made by: | Middle Island Resources Limited (ACN 142 361 608) of Suite 1, 2 Richardson Street, |
West Perth WA 6005 (Company) |
Product: Free attaching Options in connection with a renounceable entitlement offer under a prospectus dated 31 October 2023 (Options)
Effective date: | 31 October 2023 |
This target market determination (TMD) has been prepared by the Company in relation to an offer to issue the Options made by the Company under a prospectus dated 31 October 2023 (Prospectus). A copy of the Prospectus is available on the Company's website, https://www.middleisland.com.au/. Mahe Capital Pty Ltd (AFSL 517246) (Mahe Capital) has been appointed as the lead manager to the offer.
The offer will be made under, or accompanied by, a copy of the Prospectus. Any recipient of this TMD should carefully read and consider the Prospectus in full and consult their professional adviser if they have any questions regarding the contents of the Prospectus. Any recipient of this TMD who wants to acquire Options under the offer will need to complete the application form that will be in, or will accompany, the Prospectus. There is no cooling off period in respect of the issue of the Options. This TMD is not a disclosure document for the purposes of the Corporations Act 2001 (Cth), and therefore has not been lodged, and does not require lodgement, with the Australian Securities and Investments Commission (ASIC) nor does it contain a full summary of the terms and conditions of the Options
This TMD does not take into account what you currently have, or what you want and need, for your financial future. It is important for you to consider these matters and read the Prospectus before you make an investment decision. The Company is not licensed to provide financial product advice in relation to the Options.
1. TARGET MARKET
Factor | Target market | |
Investment Objective The Company expects that an investment in Options will be suitable to investors who wish to gain exposure to equities in / seek to profit from an appreciation in the market price of shares in a small-cap mining exploration company listed on the Australian Securities Exchange (ASX).
Investment Timeframe The target market of investors will take a short to medium term outlook on their investment. Investors with a short-term outlook for their investment will benefit from an anticipated listing of the Options on ASX, as well as an ability to exercise Options and trade the underlying Shares issued on exercise should the exercise price of the Options be lower than the trading price of Shares. Investors with a medium-term outlook will benefit from an ability to exercise the Options within the 18-month term of the Options and increase their shareholding and exposure to the potential upside in the Company's Shares into the future.
Given the need to pay the exercise price in order to acquire Shares, Investors in the target market are in a financial position that is sufficient for them to invest their funds over an 18-month time horizon should they wish to exercise their Options. Any decision to
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exercise the Options is likely to be based on the trading price of the Shares.
Investment Metrics | While the Company does not have an established eligibility | |
framework for investors based on metrics such as age, expected | ||
return or volatility, it is expected that the target market of | ||
investors will be able to withstand potential fluctuations in the | ||
value of their investment and who are accustomed to participating | ||
in speculative investments in the mining exploration sector. | ||
An exercise price is required to be paid to acquire shares on | ||
exercise of Options. As such, the capacity to realise the underlying | ||
value of the Options would require that they be exercised on or | ||
before the expiry date. Investors in the target market will need to | ||
be in a financial position to have sufficient available funds so as to | ||
facilitate an exercise of the Options prior to the expiry date. Prior | ||
to the expiry date, investors' ability to liquidate the Options may | ||
be limited by a lack of liquidity in the trading of Options and Shares | ||
and the price of the Shares. | ||
The Options offer no guaranteed income or capital protection. | ||
Risk | ||
The Company considers that an investment in the Options is highly | ||
speculative, such that an investment in the Company is not | ||
appropriate for an investor who would not be able to bear a loss | ||
of some or all of the investment. Investors should also have a |
sufficient level of financial literacy and resources (either alone or in conjunction with an appropriate adviser) to understand and appreciate the risks of investing in Options as an asset class generally and the more specific risks of investing in an Australian listed mining exploration company.
2. DISTRIBUTION CONDITIONS
The offer of Options under the Prospectus is being made to those shareholders in the Company registered at the record date specified in the Prospectus (Eligible Shareholders).
Any entitlement not taken up under the offer will form a shortfall offer (Shortfall Offer). Eligible Shareholders may also subscribe for Options above their entitlement under the Shortfall Offer. In addition, Mahe Capital, as underwriter and lead manager to the offer, may subscribe, or procure that subscriptions are made by third party investors, under the Shortfall Offer pursuant to the underwriting agreement.
The Prospectus will include jurisdictional conditions on eligibility. The Company will also include on its web landing page for the offer of Options a copy of this TMD and require that retail clients confirm that they meet the eligibility criteria of the expected target market outlined in this TMD before they apply for Options.
The Company considers that these distribution conditions will ensure that persons who invest in Options fall within the target market in circumstances where personal advice is not being provided to those persons by the Company.
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REVIEW TRIGGERS
The Options are being offered for a limited offer period set out in the Prospectus, after the conclusion of which the Options will no longer be available for investment by way of issue. It follows that the TMD will only apply in the period between the commencement of the offer of the Options and the issue of the Options shortly after the close of the Offer (Offer Period).
To allow the Company to determine whether circumstances exist that indicate this TMD is no longer appropriate to the Options and should be reviewed, the following review triggers apply for the Offer Period: - a new offer of Options that requires preparation of a disclosure document is made after completion of the Offer Period;
- any event or circumstance that would materially change a factor taken into account in making this TMD;
- the existence of a significant dealing of the Options that is not consistent with this TMD. The Company does not consider that an on-sale of the Options on market is a significant dealing;
- ASIC raises concerns with the Company regarding the adequacy of the design or distribution of the Options or this TMD; and
- material changes to the regulatory environment that applies to an investment in the Options.
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REVIEW PERIOD
If a review trigger occurs during the Offer Period, the Company will undertake a review of the TMD in light of the review trigger.
The Company will otherwise complete a review of the TMD immediately prior to the issue of Options under the Offer. - INFORMATION REPORTING
The reporting requirements of all distributors is set out in the table below.
Reporting requirement
Whether the distributor received complaints about the Options.
Period for reporting to the
Company by the distributor
- For such time as the Offer Period remains open, within 10 business days after the end of each quarter.
- Within 10 business days after the end of the Offer Period.
Information to be provided
• The number of complaints received.
- A summary of the nature of each complaint or a copy of each complaint.
A significant dealing of the Options that is not consistent with this TMD
As soon as reasonably | • | Details of the significant | ||||
practicable after the significant | dealing. | |||||
dealing occurs, | but in any | • | Reasons | why | the | |
event no later than 10 business | distributor considers that | |||||
days after the | significant | the significant dealing is | ||||
dealing occurs. |
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Reporting requirement
A summary of the steps taken by the distributor to ensure that its conduct was consistent with this TMD.
Period for reporting to the | Information to be provided | |
Company by the distributor | ||
not consistent with this | ||
TMD. | ||
Within 10 business days after | A summary of the steps taken | |
the end of the close of the | by the distributor to ensure | |
offer of Options in accordance | that its conduct was consistent | |
with the Prospectus. | with this TMD. | |
6. CONTACT DETAILS
Contact details in respect of this TMD for the Company are:
Rudolf Tieleman Company Secretary Phone: +61 8 9322 1430 Mobile: +61 478 573 935
Email: rudolf@middleisland.com.au
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Disclaimer
Middle Island Resources Limited published this content on 31 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 October 2023 05:26:43 UTC.