Neo Lithium Corp NTTHF

Galaxy on halt

[Eric35]

https://www.google.ca/amp/s/www.nasdaq.com/articles/australias-galaxy-resources-to-raise-%2524118-mln-to-fund-lithium-projects-2020-11-24%3famp
 

 

Nov 25 (Reuters) - Australian lithium miner Galaxy Resources GXY.AX on Wednesday said it will raise about A$161 million ($118.43 million) in a share placement to fund the development of its lithium projects in Argentina and Canada.

Capital raised will be used to fund development of Sal de Vida lithium brine project in Argentina, with front-end engineering & design for stage 1 expected to be completed by first quarter next year and first production expected in late 2022.
 

Galaxy will place about 65 million shares to raise A$111 million, with another A$50 million to be raised via a 1-for-14 pro-rata entitlement offer of about 29 million shares, it said.

The new shares will be issued at A$1.70 per share, a 15% discount to its last close.

($1 = 1.3594 Australian dollars)

I don't understand this one . Should not be better to wait longer and see the share prices going up before doing financing.

[RuudinFrance]

Funny thing is that they put new shares in the market at a 15% discount to last price. Yet, those shares may be a good deal too ;-) Have fun.

[tiger6301]

It's typical at 15% discount. It seems everyone is in a rush to raise funds for developments and expansions, and NLC is in a slow lane. I just watched the youtube last night's webinar, there are ony about 158 viewers so far, the following is the link. tiger https://www.youtube.com/watch?v=p_qYCv_FPAQ  

[neosceptic]

Eric, The discout given after significant s/p surge, from about 1.25 to 2.00 in just 6 weeks. Just throwing large number of shares on market may bring drop below $1.70 and confuse investors. Every single report indicate on large scale EV increase starting from 2023 (in 2 month we will be talking about "next year"). Galaxy want to deep into new revenues from begining. Speed over dilution