E3 Lithium Ltd V.ETL

Roth Capital increase target price to $8.50

[ndiamond]

ETL.V: Gets C$27 Million Government Investment; Fireside Chat December 6th On November 28, 2022, ETL.V announced it had received an investment from the SIF for C$27 million. We view this as a significant positive for the company as it reduces near-term risks and potential dilution. As a result, we are increasing our price target from C$7.50 to C$8.50 to reflect lower future dilution assumptions. Additionally, we will be hosting a fireside chat with management on December 6, 2022 (details below). E3 receives C$27 million investment from SIF. On November 28, 2022, E3 Lithium announced it had received an investment of C$27 million from the Canadian Government's Strategic Innovation Fund (SIF). The investment is structured as a reimbursement of expenses related to developing E3's project and technology. The reimbursement rate is 33.94% of total expenses up to a total reimbursement of C$27 million and is retroactive to August 2021 when E3 initially applied for the funding. Ultimately, E3 may need to repay the funding out of future revenue, but we still see this as a significant positive development as it reduces near-term capital needs for the company. Additionally, we believe this reflects confidence and support from the Canadian Government. ROTH to host fireside chat December 6, 2022. On December 6, 2022, ROTH Capital Partners will be hosting a webinar fireside chat with E3 Lithium CEO, Chris Doornbos. We will discuss the aforementioned investment by SIF as well as other developments and future plans for E3. If you would like to attend the webinar please register here or contact your sales representative. Increasing price target to C$8.50. Mostly as a result of the aforementioned C $27 million investment by SIF and the indirect reduction in future capital needs, we are increasing our price target from C$7.50 to C$8.50. Additionally, we are reiterating our Buy rating as we believe E3 has additional potential positive catalysts on the horizon. Most notably, we believe advancing to pilot-stage should result in a significant rerating of the company by the market.

[GMon]

Do you happen to have a link to register and watch the Dec 6 chat? Gmon

[ndiamond]

Don't have a link.   But am hearing it may just be for Roth clients.    Not sure.

[Beaubie]

With the feds news and the significant cash on hand of oil companies do you think that this becomes a takeover candidate?

[ndiamond]

I think for sure it ETL is a potential takeover target.  it is also very undervalued.    If you look at others pursuing direct lithium extraction technologies (like Standard Lithium etc) - they all have $1 billion market valuations.         Would put  ETL at $16 per share.          But for now I will take Ruth's $8.50 target.

[Greatvac1]

It seems to me that the last few times Roth has increased their outlook on (us) ETL it's been a death signal to the rising share price.  I hope this isn't the case this time.  Whatever, ETL has no place to go but up in the near future. GLTA

[Jethro980]

I have great faith in E3 and think it will explode the way Ballard power did years ago. Ballard faltered but I see E 3 solid long term.  But any of those prognosticators like this Roth report is nonsense. Every time I read those reports I can only laugh knowing that the probability is high that they will simply be wrong because they almost always are .  I would not trust a word from Roth

[Greatvac1]

What a coincidence?

[Jethro980]

No buy outs for E3.  Absolutely not.  Buy and hold and let this play out over next 12 to 36 months.  No buy outs.