the Sayona Mining Ltd The share value (ASX: SYA) drops right this moment following the launch of a waiver of rights concern. As of late afternoon, shares of rising lithium miners had been buying and selling at 3.7 cents, down 5.1%.

What did Sayona announce?

Buyers offload the Sayona share value after the corporate introduced a rights concern that can dilute the stakes.

Based on its submit, Sayona stated it has launched a waivable rights concern to boost as much as $ 20.4 million earlier than prices. The 1 for six provide will probably be obtainable to all eligible shareholders with registered addresses in Australia and New Zealand.

The corporate decided the problem value to be 3.2 cents per share, which represents a ten.5% discount from the 30-day Quantity Weighted Common Worth (VWAP).

Sayona famous that its fundamental shareholder, Piedmont Lithium Ltd (ASX: PLL), will take part within the rights concern.

The funds acquired will help the corporate’s development plans in Quebec, Canada. This includes advancing its flagship Authier Lithium challenge and the following Tansim Lithium challenge in collaboration with Piedmont.

The rights concern will shut on April 20, 2021 and the brand new widespread shares will start buying and selling on April 28, 2021.

Administration’s phrases

Sayona chief govt Brett Lynch touched on the potential market alternative, saying:

Quebec provides monumental aggressive benefits as a lithium producer and downstream transformer as a result of its world-class infrastructure and workforce, environmentally pleasant hydroelectric energy and market entry. rising North American batteries.

This funding will assist make sure that we are able to solidify our lithium initiatives as a key to the area’s clear vitality future, with the potential to supply clear, inexperienced lithium hydroxide on to Ontario automakers and shoppers. North Carolina battery makers.

In regards to the Sayona share value

Regardless of right this moment’s fall, the Sayona share value has risen by over 400% since this time final yr. Nonetheless, a lot of the massive positive factors got here from early 2021 because of renewed optimism within the lithium market.

Sayona has a market capitalization of roughly $ 140 million, with over 3.7 billion shares excellent.

Motley Idiot Contributor Aaron Teboneras has no place in any of the listed securities. The Motley Idiot Australia has no place in any of the shares talked about. The Motley Idiot has a disclosure coverage. This text solely incorporates basic funding recommendation (below AFSL 400691). Licensed by Bruce Jackson.