Source: Streetwise Reports
August 15, 2023 (Investorideas.com Newswire) Volt Lithium is looking good as markets for EV battery metals drive higher. Read on to see how the company is raising capital for future endeavors.
Volt Lithium Corp. (VLT:TSV; VLTLF:US) has successfully raised CA$6.8 million under a previously announced offering. This offering was undertaken by Canaccord Genuity Corp. on a "best efforts" agency basis and included Paradigm Capital Inc. Pursuant to the terms and conditions of an amended and restated agency agreement. Volt Lithium was also advised on the offering by 3L Capital Inc.
Under this public offering, Volt issued 14,956,590 units at a price of CA$0.22 per HD Unit and 11,262,500 flow-through units (FT) at a price of CA$0.24 per FT unit, raising gross proceeds of approximately CA$6 million. At the same time as the offering's closing, some subscribers purchased a total of 266,666 FT Units at an offering price of CA$0.24 per FT Unit and 3,287,931 HD Units at an offering price of CA$0.22 per HD unit on a private placement basis, raising gross proceeds of approximately CA$787,345. The HD Units and FT Units issued pursuant to the Concurrent Private Placement are subject to a four-month period expiring on December 5, 2023. Through both the Offering and Concurrent Private Placement, Volt raised gross proceeds of approximately CA$6.8 million.
The company also granted the agents an option exercisable in whole or in part to purchase as much as an additional 4,090,909 HD units for a period of 30 days to cover over-allotments, if any, and for market stabilization.
If the Over-Allotment Option is exercised in full, the aggregate gross proceeds of the offering would be increased by CA$900,000.
The public offering was completed pursuant to the prospectus supplement of Volt dated July 27, 2023, to the short form base shelf prospectus of Volt dated July 20, 2023.
All directors and officers of Volt have entered into a lock-up agreement with the agents for a period of 90 days from the date, prohibiting their disposition of securities of the company, though this is subject to some customary exceptions.
The company paid the agents and other syndicate members a cash commission of CA$346,848 and issued an aggregate of 1,515,946 broker warrants in connection with the offering and the concurrent private placement.
Each FT unit consists of one common share in the capital of the company and one-half of one common share purchase warrants, with the FT units qualifying as flow-through shares, and each HD unit consisting of one common share and one-half of one warrant. Each warrant entitles the holder to purchase one common share at an exercise price of CA$0.33 for 24 months.
Catalyst: A Market Driven Up by EVs
Lithium has been in high demand as of late due to the need for electric vehicle batteries. With governments across the world scrambling to meet carbon goals, lithium, and other battery metals have become essential.
According to analyst T. Rowe Price, the lithium market is cause for enthusiasm: "We own a couple of lithium producers that we believe are well placed to take advantage of the strong demand for EV batteries while recognizing that lithium is only a niche sector within natural resources."
Luke Laretive of Seneca Financial Solutions is also bullish on lithium, with lithium producers expected to see increases in value.
Recent Insider Activity 'A Breath of Fresh Air'
According to Michael Ballinger of GGM Advisory Inc., energy companies are on the rise. The analyst specifically highlighted Volt Lithium as his top holding in the non-PM space and an opportunity that investors should look out for.
He commented that "the company expects to produce 1,000 tons of lithium hydroxide by the end of June 2025, which is CA$42 million in revenue against < CA$3.5 million in costs, with CA$38.5 million falling out of the equation as pre-tax earnings." [OWNERSHIP_CHART-10857]
Volt Lithium has previously had very positive coverage from analysts. Ballinger previously reported that, after buying shares of Volt, he "found the recent insider activity at Volt to be a breath of fresh air."
Ownership and Share Structure
Management and insiders own 21,676,608 shares and 4,500,000 options. Alex Wylie owns 11,376,000 shares and 850,000 options, Martin Scase owns 6,466,000 shares and 600,000 options, Warner Uhl owns 1,152,111 shares and 950,000 options, Kyle Hookey owns 1,543,038 and 600,000 options, and Maury Dumba owns 636,500 shares and 600,000 options. Andrew Leslie owns 600,000 options. Morgan Tiernan owns 502,959 shares and 300,000 options.
Institutions participated for 12.2 million shares in the company. Alpha North Asset Management holds 1,000,000 shares, U.S. Global Investors Inc. holds 1,000,000 shares, Parkwood Master Fund Ltd. owns 3,000,000 shares, Orca Capital GmbH owns 500,000 shares, Patras Capital owns 500,000 shares, Alpha Sherpa Capital Ltd. owns 728,000 shares, and Pathfinder Asset Management LTD holds 454,000 shares.
There are 130 million shares outstanding and 78.87 million free-float traded shares. There is a market cap of CA$14.87 million. It trades in the 52-week period between CA$0.06 and CA$0.55.
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