Lithium Americas Corp. (LAC) lost a further 6.39% in the aftermarket at $36.80, versus its last close at $39.31 on November 30. Intraday trading, the stock went down by 4.03% at a volume of 6.55 million shares. During the day’s session, the stock ranged between a high of $41.56 and a low of $38.01. While in the 52-week range the stock varied between $8.95 and $41.56 at a 65-day average volume of 5.17 million shares. Moreover, the stock has gained 9.22% in the past five days and 35.32% last month. While in the bigger picture, LAC stock has gone up by 213.23% year to date. Currently, the stock’s market capita; stands at $4.91 billion with 120.2 million shares outstanding. The stock’s recent continued downtrend seems to be a result of the company’s offering of convertible senior notes.
Founded in 2007, Lithium Americas Corp. (LAC) is a resource company engaging in lithium developments projects including Thacker Pass and Caucharí-Olaroz.
LAC’s Offering Details
On November 30, the company announced an offering of $225 million convertible senior notes due 2027 subject to market conditions. According to the offering, the company will also grant an additional $33,750,000 of notes purchase option to the initial purchasers. Further, the unsecured notes will mature on January 15, 2027, accruing interest payable semi-annually in arrears. The maturation is subject to repurchase, redemption, and conversion before the given date. Except for certain tax law changes, the notes can not be redeemed at LAC’s option before December 6, 2024.
Moreover, LAC intends to repay its indebtedness using the net proceeds from the offering. Some of the net proceeds of the offering would also be used for general corporate purposes by the company.
Q3 Financials
On November 15, Lithium Americas Corp. (LAC) announced its unaudited financial results for the quarter ended September 30, 2021. In the third quarter of 2021, the company incurred a net loss of $17.2million, compared to $6.5 million in the year-ago period. Consequently, the net loss per basic share was $0.14 in the third quarter of 2021. While the net loss per basic share in Q3 of 2020 was $0.07. The increase in the net loss in the third quarter was due to higher expenditures of Thacker Pass.
Further, LAC had cash and cash equivalents worth $482 million as of September 30, 2021. While at December 31, 2020, the cash and cash equivalents were $148 million.