Following an internal corporate strategic review, Leading Edge Materials Corp. has decided to spin out its Swedish subsidiary Woxna Graphite AB into a freestanding company.
The board believes that the proposed strategy will be the least dilutive to existing shareholders, and will allow the Woxna graphite project in Sweden to access necessary funding for further development.
"Through the strategic review we have identified potential funding pathways in Europe that are open for direct project investment," Interim President and CEO Mark Saxon said.
The company said May 27 that it is looking for leadership to advance the transition process, which will start immediately.
Leading Edge Materials may also undertake an initial public offering for Woxna Graphite on a Swedish public market.
The review was initiated after shareholders flagged that the Canadian miner's share price did not adequately reflect the underlying value of the company and its asset portfolio.