VANCOUVER - Lithium Americas Corp. (TSX: NYSE:LAC) (NYSE: LAC), a Canadian-based lithium resource company, announced its intention to launch an underwritten public offering of 55 million common shares, subject to market conditions. The company, which owns the Thacker Pass lithium project in Nevada through its subsidiary, Lithium Nevada Corp., also expects to grant underwriters a 30-day option to purchase up to an additional 15% of the shares offered.
The offering will be led by Evercore ISI, Goldman Sachs (NYSE:GS) & Co. LLC, and BMO Capital Markets, acting as co-lead book-running managers. It will be made available in the United States and across Canadian provinces and territories, excluding Quebec, through a prospectus supplement to the company's existing base shelf prospectus and registration statement.
Prospective investors are advised to read the prospectus supplements and the registration statement available on the U.S. Securities and Exchange Commission's website and SEDAR+ for the Canadian prospectus supplement before making an investment decision. The release cautions that the offering's completion, size, and terms are not guaranteed and are subject to market and other conditions.
Lithium Americas Corp. emphasizes that this announcement does not constitute an offer to sell or a solicitation of an offer to buy securities. The securities have not been approved or disapproved by any regulatory authority, which also has not commented on the prospectus supplements or registration statement's accuracy or adequacy.
InvestingPro Insights
Lithium Americas Corp. (LAC), while gearing up for its public offering, presents a mixed financial landscape according to the latest data from InvestingPro. With a market capitalization of approximately $1.08 billion, the company's financial health and future prospects are key considerations for potential investors. Notably, LAC holds more cash than debt on its balance sheet, which is a positive sign of financial stability. Moreover, the company's liquid assets surpass its short-term obligations, indicating a robust short-term financial position.
Nevertheless, InvestingPro Tips highlight some concerns: LAC is quickly burning through cash and has not been profitable over the last twelve months. Analysts are not optimistic about the company's profitability in the near term, expecting net income to drop this year. These factors are reflected in the company's negative P/E ratio of -267.60, and an adjusted P/E ratio for the last twelve months as of Q4 2023 at -40.1, suggesting that the market expects future earnings to be negative. Additionally, LAC’s gross profit margins are considered weak, which could impact its ability to generate profits from sales.
On the market performance front, LAC's stock has experienced volatility, taking a substantial hit over the last week with a price total return of -9.74%. However, it has seen a strong return over the last three months, with a total return of 29.03%. It's also worth noting that the stock is currently trading at 52.42% of its 52-week high, and the InvestingPro Fair Value estimate stands at $5.86 USD, which is below the current previous close price of $6.49 USD.
For investors seeking a deeper analysis, there are additional InvestingPro Tips available, which can offer more comprehensive insights into Lithium Americas Corp.'s financial health and market performance. To explore these tips and metrics further, visit https://www.investing.com/pro/LAC and remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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