Sigma Lithium Reviewing Strategic Alternatives Following Multiple Offers
Sigma Lithium (TSXV: SGML) is officially undergoing a strategic review following several strategic proposals for the company and its flagship project, the Grota do Cirilo Project in Brazil. The review process is said to be advised by BofA Securities and BTG Pactual in Brazil.
The strategic proposals are said to include interest from potential strategic partners, which includes “global industry leaders in the energy, auto, batteries and lithium refining industries.” Sigma was vague in nature in reporting these offers, suggesting that some include offers for just the project or the subsidiary that holds the project, while some include offers for the company as a whole, implying a potential buy-out.
“Our strategic review process coincides with our industry-first achievement of Triple Zero Green Lithium: zero carbon, zero tailings and zero hazardous chemicals. We recently disclosed the leaps in operational ramp-up at our Greentech lithium plant, including the success of our pioneer environmental tailings and water management industrial plant module, encompassing an innovative dry stacking of tailings coupled with water reuse,” commented Ana Cabral, CEO of Sigma Lithium.
READ: Sigma Lithium Announces First Shipment Of Tailings And Green Lithium
As part of the review the company has indicated that it is committed to maximizing value for shareholders and all stakeholders, employees, and the community. The company has stated that a “majority of the minority shareholders” will cast the deciding vote on whatever path management elects to take.
Sigma also indicated that it has established the “Green Lithium Institute,” and granted it a 1% net smelter royalty from the existing “founders royalty.” The goal of the institute is to increase the scale of the social and environmental programs of Sigma Brazil.
The strategic review is slated to be completed later this year, but no definitive timetable has been set by the company. Further details of the review are not expected to be disclosed until a decision is made.
The review follows reports of the company suing its ex-CEO Calvyn Gardner, following a messy divorce between him and Ana Cabral, both of whom previously served in the CEO role in a joint capacity. The company alleges Gardner stole valuable trade secrets with the intention of undermining Sigma’s efforts to sell itself.
The lawsuit itself follows several reports from earlier this year that the company was in discussions with multiple potential acquirers. One such discussion, as reported back in February, was with that of Tesla, although the report was not ever verified.
Sigma Lithium last traded at $43.51 on the TSX Venture.
Information for this briefing was found via Sedar, Reuters, 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.
