Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>On the 19th May 2026, <a href="https://www.smartkarma.com/entities/european-lithium-ltd" target="_blank" data-smartkarma-citation="entities:10716:1" rel="noopener">European Lithium (EUR AU)</a> entered into a reverse Scheme via a scrip deal with ~34.4% held <a href="https://www.smartkarma.com/entities/critical-metals-corp" target="_blank" data-smartkarma-citation="entities:48829:1" rel="noopener">Critical Metals (CRML US)</a>.</li>
<li>CRML initially offered 0.035 new CRML shares for each EUR share. After CRML's shares cratered post-deal announcement, CRML revised with collared scrip terms.</li>
<li>
<a href="https://announcements.asx.com.au/asxpdf/20260915/pdf/0743zqb0h59bsg.pdf" target="_blank" rel="noopener">The Scheme Booklet is now out</a>, with a Scheme Meeting on the 22nd October, and expected implementation on the 5th November. The IE (Horizon Nexus) concluded "NOT fair BUT reasonable".</li>
</ul>


On the 19th May 2026, European Lithium (EUR AU) entered into a reverse Scheme via a scrip deal with ~34.4% held Critical Metals (CRML US).
CRML initially offered 0.035 new CRML shares for each EUR share. After CRML's shares cratered post-deal announcement, CRML revised with collared scrip terms.

The Scheme Booklet is now out, with a Scheme Meeting on the 22nd October, and expected implementation on the 5th November. The IE (Horizon Nexus) concluded "NOT fair BUT reasonable".


European Lithium (EUR AU): 22nd Oct Vote On Critical Metals' Reverse Scheme

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<ul>
<li>The <a href="https://www.smartkarma.com/entities/european-lithium-ltd" target="_blank" data-smartkarma-citation="entities:10716:1" rel="noopener">European Lithium (EUR AU)</a> IE considers that <a href="https://www.smartkarma.com/entities/critical-metals-corp" target="_blank" data-smartkarma-citation="entities:48829:1" rel="noopener">Critical Metals (CRML US)</a>’s scheme offer is NOT fair but reasonable. At preferred values, the consideration is 9% below the assessed value.</li>
<li>For the deal to be fair, the CRML 20-day VWAP used to determine the exchange ratio would need to be between US$7.86 and US$8.81 per share (CRML's close was US$6.46).</li>
<li>Despite the IE’s opinion, the scheme vote should pass as the sole substantial shareholder is not an activist and no disinterested shareholder holds a blocking stake. </li>
</ul>


The European Lithium (EUR AU) IE considers that Critical Metals (CRML US)’s scheme offer is NOT fair but reasonable. At preferred values, the consideration is 9% below the assessed value.
For the deal to be fair, the CRML 20-day VWAP used to determine the exchange ratio would need to be between US$7.86 and US$8.81 per share (CRML's close was US$6.46).
Despite the IE’s opinion, the scheme vote should pass as the sole substantial shareholder is not an activist and no disinterested shareholder holds a blocking stake. 


European Lithium (EUR AU): IE Opines Not Fair but Reasonable; Scheme Vote on 22 October

<ul>
<li>
<a href="https://www.smartkarma.com/entities/critical-metals-corp" target="_blank" data-smartkarma-citation="entities:48829:1" rel="noopener">Critical Metals (CRML US)</a> has replaced its previous <a href="https://www.smartkarma.com/entities/european-lithium-ltd" target="_blank" data-smartkarma-citation="entities:10716:1" rel="noopener">European Lithium (EUR AU)</a> exchange ratio with a cap-and-floor ratio to partially offset a 48% decline in CRML shares since 28 April.</li>
<li>Based on CRML's current 20-day VWAP, the maximum exchange ratio of 0.045x applies, implying a revised consideration 28.6% higher than the previous offer.</li>
<li>If the CRML 20-day VWAP increases above US$12.00, EUR shareholders will be worse off with the revised offer. However, the likelihood of CRML’s shares almost doubling is remote.</li>
</ul>



Critical Metals (CRML US) has replaced its previous European Lithium (EUR AU) exchange ratio with a cap-and-floor ratio to partially offset a 48% decline in CRML shares since 28 April.
Based on CRML's current 20-day VWAP, the maximum exchange ratio of 0.045x applies, implying a revised consideration 28.6% higher than the previous offer.
If the CRML 20-day VWAP increases above US$12.00, EUR shareholders will be worse off with the revised offer. However, the likelihood of CRML’s shares almost doubling is remote.


European Lithium (EUR AU): CRML’s Revised Cap-And-Floor Exchange Ratio

<ul>
<li>Back on the 19th May 2026, <a href="https://www.smartkarma.com/entities/european-lithium-ltd" target="_blank" data-smartkarma-citation="entities:10716:1" rel="noopener">European Lithium (EUR AU)</a> entered into a reverse Scheme via a scrip deal with ~34.4% held <a href="https://www.smartkarma.com/entities/critical-metals-corp" target="_blank" data-smartkarma-citation="entities:48829:1" rel="noopener">Critical Metals (CRML US)</a>. </li>
<li>CRML intended to issue 0.035 new CRML shares for each EUR share. Prior to today's amended Scheme announcement, CRML's share price had fallen ~57% from the 28th April 2026 NBIO.  </li>
<li>The amendment involves a floating share Scheme transaction ratio, subject to a cap and collar, replacing the previous fixed ratio.</li>
</ul>


Back on the 19th May 2026, European Lithium (EUR AU) entered into a reverse Scheme via a scrip deal with ~34.4% held Critical Metals (CRML US). 
CRML intended to issue 0.035 new CRML shares for each EUR share. Prior to today's amended Scheme announcement, CRML's share price had fallen ~57% from the 28th April 2026 NBIO.  
The amendment involves a floating share Scheme transaction ratio, subject to a cap and collar, replacing the previous fixed ratio.


Critical Metals Caps & Collars Reverse Scheme For European Lithium (EUR AU)

<ul>
<li>
<a href="https://www.smartkarma.com/entities/european-lithium-ltd" target="_blank" data-smartkarma-citation="entities:10716:1" rel="noopener">European Lithium (EUR AU)</a> entered into a scheme implementation deed with <a target="_blank">Critical Metals (CRML US)</a> at 0.035 CRML shares per EUR share. </li>
<li>The offer remains light as it is worth less than net cash and the current value of the CRML stake, and attributes no value to EUR’s 7.5% stake in Tanbreez.</li>
<li>However, the lack of substantial shareholders and the strategic rationale for the deal suggest the vote will pass. The high spread (24%) largely reflects the inability to short CRML.</li>
</ul>



European Lithium (EUR AU) entered into a scheme implementation deed with Critical Metals (CRML US) at 0.035 CRML shares per EUR share. 
The offer remains light as it is worth less than net cash and the current value of the CRML stake, and attributes no value to EUR’s 7.5% stake in Tanbreez.
However, the lack of substantial shareholders and the strategic rationale for the deal suggest the vote will pass. The high spread (24%) largely reflects the inability to short CRML.


European Lithium (EUR AU): CRML’s Binding Proposal Remains Light

Australia

European Lithium Ltd. operates as a mining exploration and development company. The Company focuses on lithium mining projects. European Lithium offers its services worldwide.

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European Lithium (EUR AU)