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On December 21, 2018, Lake Resources N.L. (ASX:LKE) has made an announcement related to the financing commitments which it has managed to secure. The company is engaged in the business of exploring lithium which is undertaking programme which focuses on the exploration of lithium pegmatites as well as prime lithium basins. The company happens to be on the list of largest players with regards to the lithium sector. The company had made an announcement with the help of press release. As per the press release issued, the company would be raising A$0.99 million with support from the professional as well as sophisticated investors. In order to raise the mentioned amount, the company has decided to make an issue of 9,900,000 convertible notes (unsecured). The press release which was issued by the company also stated that the purposes towards which the company would be deploying the raised funds.
The capital which would be raised with the help of the issuance of convertible notes (unsecured) would be deployed towards the PFS (or pre-feasibility study) at Kachi as well as towards the working capital purposes. Also, the raised capital would be deployed for the activities focused on the drilling in Cauchari/Olaroz projects as well as for the activities related to the exploration at Paso and Catamarca Pegmatite Projects. However, the company would be utilizing the funds which have been raised towards the short-term debt (outstanding). Since the company would be issuing the notes to the investors which are regarded as “sophisticated and professional,” at present, the company would not be going forward with the issuance of a prospectus or any other disclosure document with regards to notes. Taking into consideration the terms related to notes of company, it might decide to go ahead moving forward so that the transferability of notes can be done. As per the press release published by Lake Resources Limited, the notes would be given to only those investors who are qualified when it comes to “sophisticated and professional” as per the Corporations Act.
The Notes which have been discussed above happens to be of the unlisted category. Coming to the maturity date of the notes, these would be maturing from 18 months from the issuance date. The company had earlier released their report for September 2018 quarter. The company ended September 2018 quarter with $0.3 million cash.
Let us now look how the stock has performed today. On December 21, 2018, Lake Resources Limited ended the session on the negative note, and the stock price of the company settled at A$0.072 per share which implies the fall of A$0.002 per share or 2.703%. The market capitalization of Lake Resources stood at $27.09 million. The stock price of the company is trading in the lower range.
In the previous six and three months, the stock of Lake Resources Limited has delivered the return of -22.11% and -13.95%, respectively. However, in the previous one month, the stock delivered -38.33% return.
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