Lithium Australia Secures A$1.8m Investment and Launches Share Purchase Plan
LIT (LIT) Share Update July 2024 Sunday 21st
Lithium Australia Secures Major Investment and Launches Share Purchase Plan
Lithium Australia Limited (ASX: LIT) has announced a significant financial boost with an initial investment of A$1.8 million from The Lind Partners, alongside the launch of a Share Purchase Plan (SPP) to further support its strategic initiatives.
Instant Summary:
- Lithium Australia secures A$1.8m initial investment from The Lind Partners.
- Total potential funding of up to A$7.5m.
- Launch of a Share Purchase Plan (SPP) for eligible shareholders.
- Funds to accelerate battery recycling and materials division improvements.
Investment and Funding Details
Lithium Australia has signed two agreements with The Lind Partners, securing an initial investment of approximately A$1.8 million. The total potential funding from Lind could reach up to A$7.5 million. This funding will be used to drive key growth and business development initiatives across the company's battery recycling and battery materials divisions.
In addition to the investment, Lithium Australia has launched a Share Purchase Plan (SPP), offering eligible shareholders the opportunity to subscribe for up to A$30,000 worth of new shares. The funds raised will support operational improvements and business development activities within the battery materials division.
CEO and CFO Comments
Simon Linge, CEO and Managing Director of Lithium Australia, expressed his enthusiasm for the new funding, stating, 'We are pleased to announce the launch of an SPP and signing of a placement agreement with Lind, a long-term supporter of Lithium Australia. Proceeds raised will help advance our growth strategy within our battery recycling division and business development activities.'
Chief Financial Officer Stuart Tarrant added, 'We are excited to announce the placement agreements with Lind to provide Lithium Australia with the funding required to deliver on our strategic objectives. The Lind funding allows flexibility enabling the Company to focus on achieving the key strategic milestones, optimise our cost base and effectively manage our capital requirements.'
Share Purchase Plan Details
The SPP is being issued at a price of A$0.021 per new share, representing an 8.7% discount to the 5-day VWAP and last closing price of A$0.023 per share as of 19 July 2024. Existing shareholders with a registered address in Australia or New Zealand on the Company's register at 7pm (AEST) on 19 July 2024 are eligible to participate. The SPP offer opens on 25 July 2024 and closes on 30 August 2024, with results announced on 6 September 2024.
Placement Agreement with Lind
The Placement Agreement with Lind Global Fund II includes an initial sum of approximately A$1.8 million, with up to a further aggregate amount of approximately A$5.7 million available by mutual agreement. Lind has been a supporter of Lithium Australia since 2019, backing its strategy to become a leader in the battery industry through the commercialisation of its battery recycling, lithium chemicals, and battery materials opportunities.
Jeff Easton, Founder of The Lind Partners, commented, 'We are extremely pleased that Lithium Australia has selected Lind to re-invest alongside the SPP to accelerate its growth strategy, key business development initiatives, and commercialisation plans across the recycling and battery materials businesses.'
The investment and SPP are expected to have a positive impact on Lithium Australia's stock, providing the necessary funds to accelerate growth and development in key areas. The strategic use of these funds could enhance the company's market position and investor confidence, potentially leading to a positive stock price reaction.
Investor Reaction:
Analysts and investors have reacted positively to the announcement, highlighting the strategic importance of the funding and the potential for accelerated growth. The involvement of The Lind Partners, a long-term supporter, adds credibility and confidence to the investment.
Conclusion:
Investors should closely monitor the progress of Lithium Australia's initiatives funded by this investment and SPP. The company's strategic focus on battery recycling and materials development positions it well for future growth. Participation in the SPP could be a valuable opportunity for eligible shareholders.