They are talking about a spin-off company for SOP production. They're probably doing that for a couple of reasons:
1. The spinoff company can raise funds without diluting AAA shareholders. Obviously AAA shareholders would be owners of the spinoff company shares as well, but it does provide useful separation between the two projects. SOP won't production until later than MOP, so it gives shareholders who don't want to wait for that an opportunity to sell their interest there. It also ensures that they don't raise the float on AAA shares.
2. It will probably spin off for existing shareholders, which means ICL (which hasn't exercised its 3 year warrants yet) will get less of the new company unless they exercise their warrants before the spin off happens. Either scenario is positive for shareholders. In one case, ICL gets less of the pie of the new company. Given how cheaply they got their stake in AAA I could go for some of that. In the other case (ICL exercises warrants early) it's a clear indication that they intend to take out AAA and that should provide earlier share appreciation for anyone that wants to exit as well as boost overall market confidence in the company.
