Strategic Elements (ASX: SOR) has been admitted to the ASX after an oversubscribed IPO, with the company's shares set to hit the boards at 3:00pm EST on Thursday 11 August.
The IPO received strong support from the investment community - as this is believed to be the world's first listed rare earths focus pooled development fund.
Strategic Elements provides investors with a very unique rare earth focused offering - with the company strategy to invest into companies targeting potentially large scale rare earths and rare metal projects.
Another interesting factor is due to the company being classified as a pooled development fund status - most shareholders would pay no tax on capital gains or dividends.
The IPO offered 5 million shares at $0.20 to raise $1 million, with an allowance for oversubscriptions of up to another 15 million shares to raise up to a further $3 million.
At the close of the IPO Strategic Elements had over $4 million in cash and plans to invest into Australian companies, with the objective to discover economic deposits of rare earths, mine these minerals and develop them into value added materials.
In addition to exploration, Strategic Elements will also invest in mining, processing and materials development by providing capital, technical expertise and industry alliances to early stage small and medium sized Australian companies.
Strategic Elements also has signed an investment deed with New York based Bergen Global Opportunity Fund II (Bergen Global) giving the fund a right of first refusal to invest further equity in the company.