Tecpetrol Extends Deadline For Alpha Lithium Takeover Bid To October 20
Tecpetrol appears to be doing all that it can to acquire Alpha Lithium (NEO: ALLI). The firm, after initially setting a hard stop of October 3 for shareholders to tender their shares under a takeover bid, has now extended that date to October 20.
The extension by Tecpetrol to the deadline for shares to be tendered follows the special committee of the board of directors of Alpha unanimously recommending that shareholders accept the offer. Tecpetrol in extending the deadline cited this as a reason for the extension, as well as a Canadian federal holiday on October 2 and the difficulty some shareholders experienced when dealing with their broker to accept the offer.
The extension also comes after one of Alpha’s largest shareholders, Caravel Capital, voiced its support for the transaction.
The offer itself amounts to C$1.48 per share of Alpha Lithium, to be paid in cash. The offer at time of announcement amounted to a 42% premium to the volume weighted average price of Alpha, and was a 19% improvement over the prior $1.24 per share offer that Tecpetrol had made.
The announcement also came on the heels of Alpha Lithium filing a revised preliminary economic assessment for its wholly-owned Tolillar lithium brine project, an updated report from its inaugural version back in July.
“Even with conservative estimates, Alpha’s Tolillar project continues to be a significant lithium carbonate project with exceptional and increasing potential. Today’s filing of PEA #2 details the $2.3 billion NPV potential of the Tolillar project, and we look forward to realizing that value to the benefit of our shareholders,” said CEO Brad Nichol at the time.
Alpha Lithium last traded at $1.40 on the Neo.
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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.
