Galan Lithium Secures $1.1 Million Through At-The-Market Raise
GALAN LITHIUM LIMITED (GLN) Share Update August 2024 Thursday 15th
Galan Lithium Announces $1.1 Million At-The-Market Raise
Galan Lithium Limited (ASX:GLN) has successfully raised $1.1 million by utilizing its At-the-Market Subscription Agreement with Acuity Capital, issuing 9 million shares at $0.1222 each.
Instant Summary:
- Galan Lithium raises $1.1 million through At-the-Market Subscription Agreement.
- 9 million shares issued at $0.1222 per share.
- Issue price represents a 9.3% discount to the 15-day VWAP.
- Funds raised will be used for working capital.
Details of the Raise
On 15 August 2024, Galan Lithium Limited (ASX:GLN) announced that it has raised $1.1 million through an At-the-Market Subscription Agreement (ATM) with Acuity Capital. The company agreed to issue 9 million fully paid ordinary shares at an issue price of $0.1222 per share.
The issue price of $0.1222 represents a 9.3% discount to the 15-day Volume Weighted Average Price (VWAP) of $0.1348 as of 15 August 2024. The shares will be issued out of the company's LR7.1A capacity.
Purpose of the Funds
The funds raised through this ATM will be allocated towards working capital, supporting the company's ongoing operations and strategic initiatives. An Appendix 2A will follow to provide further details on the issuance.
Company's Statement
The Galan Board has authorized the release of this announcement. For more information, investors can contact Managing Director Juan Pablo ('JP') Vargas de la Vega, Non-Executive Director Terry Gardiner, or Investor and Media Relations representative Jane Morgan.
The successful raise of $1.1 million is a positive step for Galan Lithium, providing the company with additional working capital to support its operations. The 9.3% discount to the 15-day VWAP may cause a slight dip in the stock price in the short term as the market adjusts to the new share issuance. However, the infusion of capital could bolster investor confidence in the company's financial stability and future prospects.
Investor Reaction:
Analysts are likely to view this capital raise as a strategic move to strengthen the company's financial position. While the discount to the VWAP may raise some concerns, the overall sentiment is expected to be positive given the additional working capital. Investors will be keen to see how Galan Lithium utilizes these funds to drive growth and achieve its strategic objectives.
Conclusion:
Investors should keep an eye on Galan Lithium's next steps following this capital raise. The company's ability to effectively deploy the raised funds towards its strategic initiatives will be crucial in maintaining and potentially enhancing investor confidence. Stay tuned for the Appendix 2A for more details on the share issuance.