RE:Food for thoughtGreat article Wokelemon, just replace their Thacker Pass with E3’s, Clearwater project and IMHO, it fits perfectly. (amount of shares will be different)
Article in part: Lithium Americas
LAC announced plans to issue up to 63.25 million shares, including underwriter options, which is nearly 38% of shares outstanding as of Dec. 31, 2023. The equity raise is necessary, as it will fully fund the phase 1 capital expenditures for the Thacker Pass project.
As Lithium Americas generates no revenue, the equity issuance makes strategic sense to finance the project without additional debt. However, the firm will still need funding for operating expenses in 2025-27, until Thacker Pass begins ramping up production and generating revenue. Accordingly, the company could issue additional equity in the future. gl