Lithium Americas (NYSE:LAC) stock is falling hard on Thursday after the lithium mining company announced the pricing for a public offering of its shares.
Lithium Americas is offering 55 million shares of LAC stock for $5 each in this offering. Underwriters also have a 30-day option to acquire another 8.25 million shares for this price.
Lithium Americas expects gross proceeds of $275 million from the offering. The company says that it will use these funds to continue its exploration and development of its Thacker Pass project. This is a mining operation based in Humboldt County, Nevada.
How This Offering Affects LAC Stock
The public stock offering has Lithium Americas increasing the total number of outstanding shares available on the public market. Doing so dilutes the stakes of current investors in LAC stock. This is one of the reasons why the company’s shares are down today.
Another factor weighing on LAC stock is the $5 offering price. That’s a discount compared to its prior closing price of $6.63 per share. It makes sense investors would see LAC shares drop with that discount.
LAC stock is down 27.5% as of Thursday morning with some 17 million units traded. The company’s daily average trading volume is below that at 3.7 million shares.
Investors will want to stick around for even more insight into the latest stock market stories!
We have all of the hottest stock market coverage ready to go on Thursday! A few examples include what’s happening with shares of Walgreens (NASDAQ:WBA), Arm (NASDAQ:ARM) and 23andMe (NASDAQ:ME) stock. You can catch up on these matters at the links below!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Article printed from InvestorPlace Media, https://investorplace.com/2024/04/why-is-lithium-americas-lac-stock-down-28-today/.
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