Lithium Americas (NYSE: LAC) stock plunged 30% in intraday trading Thursday to $4.66, marking its lowest point since late February. This downturn followed its decision to sell 55 million shares at a significant markdown.
Lithium Americas (LAC) has launched the public offering of 55,000,000 (55 million) of its common shares at $5.00 per share, resulting in aggregate gross proceeds of $275 million for the company.
The Vancouver-based firm plans to use the proceeds to advance the construction and development of its Thacker Pass lithium project in Nevada. The mine is positioned to emerge as one of the most promising sources of lithium in the United States. Lithium serves as a crucial component for electric vehicles, solar panels, and wind turbines.
The company intends to close the offering on April 22, which remains contingent upon meeting customary closing conditions.
In March, the Biden administration offered a $2.26 billion loan to Lithium Americas. This financial support aims to facilitate the construction of a lithium carbonate processing plant adjacent to the Thacker Pass project. This move coincides with the United States ramping up efforts to decrease dependence on China for battery metals and the electric vehicle (EV) supply chain.
Lithium Americas (NYSE: LAC) Stock Movement
At the time of publication, LAC stock has traded at $4.66, experiencing a 29.71% decrease compared to the previous trading session. Traders have exchanged 32,100,176 (32.10 million) shares, surpassing the average daily trading volume of 4.12 million.
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