RE:RE:LAC performed similar step day yesterdaytiger6301 wrote: Hi Neo,
Agree with you that any development componies need to go through this process by either through Debt or Issuing new Equity. The main test for the management is how to MINIMIZE share dilution!
My point is that we have a strong wind on our back, and we can walk our SP much higher through a series o Positive news, and raise money later on. The money raised is not enough for the Pond Construction, and it is costing $160 millions.
It seems there are strong interest in NLC, and I was planning to buy more, but the SP didn't come down enough for me, and I always have too much.
tiger
neosceptic wrote: Share prices before the halt, $26
Offering $22 (15% dillution)
Share price after the halt: $22.23
Today share price: $22.60
LAC had enough $ for the stage one production, now they have for the stage 2.
It is short term pain for long term gain trade off.
Tiger, I agree, dillution never fun.
I assume that they need money to perform engineering, planing, legal, and other job that needed to be done before construction.
Architect (for plant) alone can ask for few month. As FS done and the financing completed, NLC can jump-start digging and building. This dillution may win us 6 month or so.
I do hope that future dullution would be limited within 30% (or less) and most of the funds wouldb obtained through debt. CFO already mentioned several off-takes offers (that in combination with stellar FS can be good base for loans) and CATL may provide guarantees.
Will see, so far so good.