Lithium Americas Falls 27% In Pre-Market Trading Following US$275 Million Financing
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.
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.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
