0.0353158621 CRML shares confirmed for each EUR option

Option conversion ratio confirmed

European Lithium Limited (ASX:EUR, FRA: PF8, OTC: EULIF) has set the final consideration for its listed options, removing one of the last pieces of calculation in Critical Metals Corp.’s (NASDAQ: CRML) acquisition. Eligible optionholders will receive 0.0353158621 new CRML shares for each EUR option held on the Record Date, equivalent to about 35.32 CRML shares for every 1,000 options, subject to rounding.

The announcement comes after the scheme cleared its legal hurdle and became effective on 27 October. The share and option schemes are now moving through their settlement timetable, rather than awaiting a shareholder or court decision.

Exchange rate drives final option value

The calculation used an AUD/USD exchange rate of 0.7021, published by the Reserve Bank of Australia for 27 October. European Lithium converted the A$0.10 option exercise price into US$0.07021, then applied the scheme’s cashless exercise formula against a CRML Scheme VWAP of US$7.25 and the previously announced share scheme ratio of 0.045.

That result is lower than the 0.045 CRML shares issued for each EUR share, because the option consideration reflects the exercise price rather than treating each option as a fully paid share. The ratio had been fixed after the 0.045 CRML share ratio was announced ahead of the securityholder vote.

Small optionholders receive sale proceeds

Optionholders who would otherwise receive fewer than 35 CRML shares will be classified as Small Optionholders. At the confirmed ratio, that applies to holders of 991 or fewer EUR options, provided they are not otherwise ineligible.

These holders will not receive individual CRML share parcels. Instead, the shares attributable to their entitlements will be issued to a sale agent and sold through the sale facility, with each Small Optionholder receiving a pro rata share of the net cash proceeds. The arrangement avoids distributing very small parcels of a newly listed US security, but leaves the eventual cash amount dependent on the sale process.

Record date precedes CRML trading

EUR optionholders still have until 5:00pm AWST on 28 October to exercise their options in cleared funds. Any EUR shares issued in time and still held at the Record Date will participate in the share scheme; options not exercised by the deadline will be handled under the option scheme.

The Record Date is set for 29 October, with implementation scheduled for 5 November. New CRML shares are expected to begin trading on Nasdaq on 6 November, the same day European Lithium is expected to be removed from the ASX, although the timetable remains indicative and may change if required approvals are needed.