Under an underwriting agreement, the company will issue 40 million shares to Acuity Capital at A$0.975 per share, representing a 2.1% premium to 15 trading day VWAP through March 7.
Lake Resources NL (ASX:LKE, OTCQB:LLKKF) has increased its balance sheet to A$39 million using its At-the-Market (ATM) subscription agreement with Acuity Capital.
The company has agreed to issue 40 million fully paid ordinary shares to Acuity Capital at a price of AUD 0.975 per share.
This represents a 2.1% premium to the 15 trading day VWAP of $0.955 as of March 7, 2022.
“Rapid Expansion Period”
Lake Chairman Stu Crow said the successful issuance of shares to Acuity under the ATM subscription agreement further strengthened the company’s balance sheet.
“With letters of interest from UK and Canadian export credit agencies to fund up to 70% of the development costs of the Kachi project, these funds will support a period of rapid expansion and activity. increased in LKE’s four brine projects in Argentina,” he said.
The 40 million Lake shares will be issued from the company’s LR7.1 capacity and the funds raised will also be used for working capital.
Settlement of the transaction is expected to occur on March 11, 2022.