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- Lithium Australia (LIT) has received firm commitments to undertake a $4 million placement
- More than 75 million fully paid ordinary shares will be issued to sophisticated and professional investors at 5.3 cents each
- Lithium Australia has also announced it will undertake a share purchase plan to raise an additional $2 million
- Eligible shareholders will be able to subscribe for up to $30,000 worth of shares without incurring any brokerage or transaction costs
- Lithium Australia will use the money to commercialise Envirostream Australia battery recycling business, and enhance its marketing and collection capabilities
- The funds will also subsidise marketing costs for Soluna Australia’s renewable-energy storage systems and for general working capital
- Company shares have dropped 14.7 per cent and are currently trading for 5.8 cents each
Lithium Australia (LIT) has received firm commitments to undertake a $4 million placement.
The company entered back-to-back trading halts on August 10 but did not know how much it would be raising at the time.
75,471,698 fully paid ordinary shares will be issued to institutional, sophisticated and professional investors at 5.3 cents each.
This price represents a 16 per cent discount to the five-day volume-weighted average price.
Lithium Australia has also announced that it will be undertaking a share purchase plan to raise an additional $2 million.
Eligible shareholders will be able to subscribe for up to $30,000 worth of shares without incurring any brokerage or transaction costs.
If demand exceeds $2 million, Lithium Australia has the right to scale back applications. It also has the right to close the plan early.
The share purchase plan will open on August 14 and close on September 7. Shares will then be allocated on September 10 and will begin trading on the ASX on September 11.
Lithium Australia will use the money from both the placement and share purchase plan to commercialise the Envirostream Australia battery recycling business and enhance its marketing and collection capabilities.
Funds will subsidise marketing costs for Soluna Australia’s renewable-energy storage systems and for general working capital.
Company shares have dropped 14.7 per cent and are trading for 5.8 cents each at 1:30 pm AEST.
