Lithium Americas (TSX: LAC) is expected to have a red day on the markets today, after pricing a financing that was announced last night. The offering is set to come at a significant discount to the last traded price of the equity.
The financing will see the company raise US$275 million at a price of US$5.00 per share. The offering will see proceeds used to advance the construction of the firms flagship Thacker Pass lithium project in Nevada. A total of 55.0 million shares are expected to be sold under the offering.
Pricing of the offering however comes at a large 24.6% discount to yesterday’s closing price on the NYSE, which was $6.63 per share. The equity is currently down over 27% in pre-market trading following the announcement.
The offering follows Lithium Americas last month receiving a $2.26 billion conditional loan commitment from the US Department of Energy. When combined with the recent commitments from General Motors and the current outstanding offering, Lithium Americas estimates that the $2.736 billion needed for Phase 1 construction of Thacker Pass will be fully funded.
Sponsored · Altamira Gold Corp.
The financing is slated to close April 22, 2024.
Lithium Americas last traded at $9.16 on the TSX.
Information for this briefing was found via Sedar and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
