CleanTech Lithium Raises £2.4M in Placing, Progresses Laguna Verde Project
Why we think this is neutral
The RNS announces a £2.4 million placing by CleanTech Lithium at a significant discount of around 31% to the company's 52-week high share price. While the net proceeds will be used to advance the company's key projects, the discounted placing suggests low investor appetite and could put downward pressure on the share price in the short term. However, the support from existing institutional shareholders and the granting of the Broker Option indicate the company may be able to raise additional funds if needed. Overall, the news is neutral, as the potential long-term benefits of the project advancements are balanced by the short-term dilution and share price impact of the discounted placing.
Key Points
- £2.4 million raised through issue of 15 million new ordinary shares at 16 pence per share, representing a 31% discount to the 52-week high
- Net proceeds to be used for critical path activities at Laguna Verde, PFS completion, ASX listing, and DLE pilot plant advancement
- Placing supported by existing institutional shareholders, with majority of shares placed with investors from Asia, Australia, Europe and the UK
- Broker Option granted to enable dealing with additional investor demand
- 211,228 new shares to be issued to former director in settlement of accrued consultancy fees
Summary
CleanTech Lithium PLC has conditionally raised £2.4 million through the issue of 15 million new ordinary shares at 16 pence per share, representing a 31% discount to the company's 52-week high share price. The net proceeds will be used to progress critical path activities for the CEOL at the Laguna Verde project, complete the Laguna Verde Pre-Feasibility Study, fund the ASX listing, and advance the DLE pilot plant. The placing was supported by existing institutional shareholders, with the majority of the shares placed with investors from Asia, Australia, Europe and the UK. The company also granted a Broker Option to enable them to deal with any additional demand from investors who did not participate in the initial placing. Additionally, the company will issue 211,228 new shares to a former director in settlement of accrued consultancy fees.