Delta Lithium Limited has announced a prospectus outlining a major corporate restructure involving an in-specie distribution of Ballard Shares. Under the new plan, eligible shareholders will receive one Ballard Share for every 11.25 Delta Lithium shares held. The distribution, which will transfer more than 63 million Ballard Shares, will only be implemented if shareholders approve the demerger resolution at the upcoming meeting on 30 June 2025 at 10:00 am AWST. This transaction involves a capital reduction of around AUD 15.9 million, after which approximately 20% of Ballard’s issued capital will be held by the new Ballard shareholders, while Delta Lithium will retain between 46% to 49% of Ballard’s shareholding. For eligible shareholders with records held on the specified record date, no immediate action is necessary, while ineligible shareholders have the option of entering an election process to withdraw from participation in the sale facility. In the case of ineligible shareholders, their shares will be sold by a designated sale agent, with net proceeds remitted on a pro-rata basis. The detailed prospectus includes technical information on the exposure period – noting that shares cannot be transferred for up to 13 months from the prospectus date – as well as key legal, governance, and risk disclosures. Investors are cautioned that the Ballard Shares are speculative, and that the early stage of commercialisation means dividend payments are not expected in the near future. Additional technical details cover the conditions of the demerger, the impact of the transaction on shareholder equity, and associated regulatory disclosures in accordance with the Corporations Act. Bullish sentiment centers on the potential benefits of restructuring: the new configuration is designed to unlock value through a more efficient capital structure and create a distinct strategic vehicle in Ballard, which will pursue opportunities connected to a promising Gold Asset. The opportunity for shareholders to receive additional assets without needing to take any immediate action may be seen as an attractive development. Conversely, bearish sentiment focuses on the speculative nature of the Ballard Shares and the complexities of the regulatory and technical factors involved. The prospectus warns of numerous risks including potential volatility, uncertainties in the early phases of commercialisation, and the lack of dividend prospects in the short term, which could pose challenges for less experienced traders. Overall, the announcement presents a significant corporate transition that could have far-reaching impacts on Delta Lithium’s structure and investor holdings, and careful consideration of the technical and speculative risks is advised for all shareholders.