Editor’s note: An earlier version of this article incorrectly stated that the company’s equity program will be managed by GS, BMO, and RBC. It has been corrected to show that TD Securities will manage the program.
Shares of Lithium Americas Corp (NYSE:LAC) climbed 4.6% in pre-market trading on Thursday, as company initiated a $250 million at-the-market equity program.
Funds To Be Used For Operational Needs
The company's equity program will be managed by TD Securities. The program will allow the company to issue and sell shares of its common stock through these agents, as per the company’s filing with the U.S. Securities and Exchange Commission (SEC).
Lithium Americas plans to use any net proceeds for general corporate purposes, including funding part of a $120 million Department of Energy (DoE) reserve, covering project overheads and capital expenses, repaying debt, boosting working capital.
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Stock Soars After $435 Million DoE Loan And GM Partnership Deal
The company’s stock has been on a rollercoaster ride recently. It surged 17.6% over the past 5 days following a groundbreaking agreement with the DoE and General Motors (NYSE:GM).
This deal saw the DoE providing a $435 million first draw on a previously announced $2.26 billion loan to develop the Thacker Pass project. The DoE also picked up a 5% equity stake in Lithium Americas and a 5% stake in the joint venture with GM.
DoE Stake Deemed "Game Changer" By Analysts
Analysts have labeled DoE’s stake purchase as a “game changer” for the company and the domestic lithium supply chain. This development is expected to significantly boost the company’s financial position, allowing it to accelerate the development of its key projects and strengthen its market position.
Shares in the company were last trading at $8.22 on Thursday.
Benzinga Edge Stock Rankings shows that Lithium Americas has a strong price trend over the short term, medium and long term. Its momentum ranking was strong at the 97th percentile; the details of other metrics are available here.
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