Why the Jupiter Mines (ASX:JMS) share price is down again today

Jupiter Mines' (ASX: JMS) share price is falling once more as its proposed spinoff company Juno Minerals Limited's IPO is delayed again.

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The Jupiter Mines Ltd (ASX: JMS) share price is falling again due to its proposed spinoff company Juno Minerals Limited. At the time of writing, the Jupiter Mines share price is trading at 31 cents, down 7.6% from Friday's close.

Let's take a look at what the mining company announced today.

More delays

Jupiter Mines' spinoff company is causing waves today, as its initial public offering (IPO) has been delayed again. The original date for Juno's IPO was to be March 17 2021, but it has been pushed back to the end of May.

The delays announced today follow the demerger's halt last week, as one of its major shareholders didn't want to meet the regulatory requirements of the Foreign Investment Review Board (FIRB). Thus, Juno's IPO was unable to go ahead.

The delay last week was caused by Stitching Pensioefonds ABP (ABP), holder of 15% of Jupiter's shares.

Jupiter reported today that a general meeting of its shareholders would be held by the end of April, where the capital reduction and demerger are expected to be re-approved.

Jupiter intends to remove the regulatory requirements of the FIRB as a condition of the transaction. Allowing it to make the changes needed to create the spinoff company.

Jupiter's CEO Priyank Thapliyal had strong words to say about the IPO's delay last week.

The IPO and the potential uplift that would have occurred with the construction of Mount Mason in the near term in this robust iron ore price market was the optimal structure to release substantial value for Jupiter shareholders. Needless to say, this has been usurped for all the shareholders by the decision of one shareholder, ABP.

About Juno

A spinoff company from Jupiter Mines, Juno takes control and ownership of Jupiter's Central Yilgarn Iron Ore assets.

The demerger and IPO of Juno were voted on by Jupiter shareholders in January 2021, with a clear majority voting for the spinoff.

Jupiter intends to provide 200 million shares in Juno, with 80 million available for public offer. The sale of shares will raise the $20 million needed to fast-track the Mount Mason Hematite Project's development.

Jupiter mines' share price snapshot 

Over the past 12 months, Jupiter Mines' share price has risen by more than 45%. 

Based on the current Jupiter Mines share price, the company has a market capitalisation of around $646 million, with approximately 1.9 billion shares outstanding.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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