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Lepidico Ltd (ASX: LPD) is an ASX listed metals and mining company based in Perth, Australia. LPD concentrates on producing lithium chemicals and is the owner of an innovative technology to a metallurgical procedure, which can generate lithium carbonate from the sources which are non-conventional. The company also developed a technology called LOH-Max TM that can generate lithium hydroxide from lithium sulphate sans the by-product sodium sulphate.
Entitlement Offer
On 31st May 2019, the company announced that it has successfully closed its renounceable entitlements offer which was announced on 7th May 2019 with an oversubscription.
The company raised a total of $10.8 million (before costs) against the total offer of 372.9 million new shares and 186.45 million new options. Post the high demand the company has agreed to issue further 8.62 million fully paid ordinary shares at an issue price of $0.029 attached with 4.31 million LPDOB options to raise an additional $250,000.
Proceeds from funds
The company will use the net proceeds, after deducting the cost to immediately commence LOHMaxTM development and engineering work with study for the location trade-off for the Phase 1 plant.
The new securities of the company are expected to be issued on 5th June 2019, as mentioned in the prospectus.
On the same day (31st May 2019) the company released a supplementary prospectus and stated some amendments to the previous prospectus. The amendments of this reissued prospectus are.â
- Making an additional offer under the prospectus of up to 8.62 million shares at an issue price of $0.029 per share to raise up to $250,000
- One free option would be attached for every two shares subscribed for and issued.
The amount of $250,000, which would be raised pursuant to the additional offer, would be used towards working capital.
On 22nd May 2019, the company announced details on its merger partner.
Technical Outlook
On the weekly chart, the stock started its uptrend from around A$0.019, from the week ended 11th February 2019 and rallied all the way up to the high of A$0.042 in the week ended 22nd April 2019. That was strong rally with a gain of more than 120%+.
This high price point was unlike the previous highs, made during the rally. At the high price point the Relative Strength Index (RSI) entered the overbought zone and closed the session at 71.84. To know more about overbought zone kindly refer to this article.
Weekly Price Chart of Lepidico (Source: Companyâs Report)
Post the RSI reaching the overbought zone, the stock witnessed selling pressure, and the RSI started falling off from the overbought zones. This sell-off took the stock to the low of A$0.28. Currently, the stock is trading at A$0.030.
Stock Performance:
The company has a market capitalisation of A$93.97 million, and the stock had touched a 52-week high and low of A$0.043 and A$0.015 respectively. The stock closed at A$0.030, after making an intraday high of A$0.032 as on 31st May 2019. The last one-year return of the stock is negative 29.1%, and the YTD return stands at 88.9%.
Disclaimer
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