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- Lithium Australia (LIT) receives firm commitments to raise nearly $12.1 million via a share placement
- The funds will be raised through the issue of more than 185 million shares to existing shareholders and new high net-worth sophisticated and institutional investors at 6.5 cents
- Participants will also receive one free-attaching option for every two shares subscribed for, exercisable at 10 cents with expiry three years from issue
- Lithium Australia will use the money to commercialise its subsidiaries, Envirostream Australia and VSPC, as well as for general working capital
- LIT shares are down 8.43 per cent and are trading at 7.6 cents at 1:40 pm AEST
Lithium Australia (LIT) has received firm commitments to raise nearly $12.1 million via a share placement.
The funds will be raised through the issue of 185,772,347 ordinary shares to existing shareholders and new high net-worth sophisticated and institutional investors at 6.5 cents each.
This issue price represents a 22 per cent discount to Lithium Australia’s closing price of 8.3 cents on August 26 and a 21 per cent discount to the five and 10-day volume-weighted average price of 8.2 cents.
Participants will also receive one free-attaching option for every two shares subscribed for, exercisable at 10 cents with expiry three years from issue.
Subject to shareholder approval, an unnamed Director will subscribe for 1,538,462 shares for $100,000.
Lithium Australia will use the money to commercialise its subsidiaries, Envirostream Australia and VSPC, as well as for general working capital.
Envirostream will use the funds to drive the increase in the safe recycling of used batteries with a national expansion study to be undertaken next year.
VSPC will use the money to complete engineering studies for the expansion of its current facilities as well as advance offtake and raw material relationships for the lithium ferro phosphate supply chain.
“This funding puts us in a strong position to continue to progress our core opportunities of battery recycling and advanced cathode materials,” Chairman George Bauk commented.
“This is an exciting time for the company and we look forward to delivering on our strategy.”
Shares in Lithium Australia were down 8.43 per cent and were trading at 7.6 cents at 1:40 pm AEST.
