LITHIUM AMERICAS C (OTCMKTS:LACDD)
Shares of LITHIUM AMERICAS C (OTCMKTS:LACDD) fell 12.03% days after the company announced it had made an application for a listing on the New York Stock Exchange. In connection with the proposed listing the company plans to consolidate its outstanding common shares.
LACDD Share Consolidation
The board of directors has approved the consolidation at the ratio of five outstanding shares common shares for one new common share. The consolidation, once complete, will reduce issued common shares to 88.5 million from 442.3 million.
LITHIUM AMERICAS C (OTCMKTS:LACDD) anticipates full listing in the NYSE American Stock Exchange before the end of the year. Listing is still subject to approval by the exchange and satisfaction of all applicable listing requirements.
“We look forward to a U.S. listing for Lithium Americas. We believe the share consolidation and U.S. listing will improve trading liquidity of our common shares and enable us to broaden our shareholder base,” said CEO, Tom Hodgson.
Lithium Americas has been on an impressive run since the start of the year. The stock has gained more than 150% in market value since January and continues to trade in a strong uptrend.
Lithium Nevada Project Development
Separately, works on the company’s Lithium Nevada project in the McDermitt Caldera is progressing well. The project should be complete by the end of Q2 2018, with LITHIUM AMERICAS C (OTCMKTS:LACDD) remaining optimistic of demonstrating the economic potential of producing lithium hydroxide from lithium bearing claystone.
The company has already assembled a technical team that includes engineering alumni from several major industries to bring the project to fruition. According to Dr. David Deak, the project has the potential to be a leading low-cost and large-scale source of lithium products in North America.
“Following the success of our partnership strategy with the Cauchari-Olaroz project in Argentina, we will continue to explore additional partnership opportunities for the Lithium Nevada Project with the goal of accelerating the timeline and lowering the development risk,” said Alexi Zawadzki.
LITHIUM AMERICAS C (OTCMKTS:LACDD) has already approved a budget of $10.5 million that is to be used to fund the Lithium Nevada Project through 2018. The company is also exploring a number of strategic partnership/ financing, alternatives to accelerate the development of the lithium project.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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