3 questions lodged at 2025 Ionic Rare Earths physical EGM
July 10, 2025
Below is a summary of the action at the Ionic Rare Earths (IXR) 10am physical EGM in Melbourne on July 7, 2025 at Baker & McKenzie in Melbourne to approve capital raising including options for broker. Market cap $95m on EGM day. Last balance sheet shows $69m of accumulated losses and net assets of $35m. See notice of meeting and voting results. No early disclosure of proxies as no formal addresses lodged with ASX. They received an ASX query after the stock took off and lodged this response.
Q1. Why did we go with a $3m convertible note this time and why were the protest votes down when the last EGM saw against votes of between 14% and 31%.
Answer: The executive chair Brett Lynch explained that it was an innovative structure at a premium and the recent surging share price probably explained the reduced against vote this time.
Q2. How much more does Computershare charge to run additional securities such as these convertible notes and the attached options.
Answer: The Computershare rep said they charge by holder not security, which the CEO summarised as "not much" on the extra cost question.
Q3. Who owns Ignite Equity and why were they given options as well as a 6% cash fee.
Answer: The CEO Tim Harrison defended the fees as being comparable to previous raises.
I was the only shareholder asking questions during the 20 minute formal meeting but once the ballots had been collected by Computershare, 6 very well informed retail shareholders engaged in a lively 80 minute Q&A session with the very forthcoming chair and CEO.
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