A development-stage company Lithium Americas (LAC), recently announced that it is expected to close its acquisition of Canada-based Millennial Lithium in an all-stock deal worth $400 million this month. It raised $258.75 million in debt in senior convertible notes to roll over old debt at a lower interest rate and used part of the proceeds to repay existing debt worth $205 million.
However, LAC posted disappointing third-quarter results, remains profitless and revenue less, and is yet to start production. In addition, the stock has lost 2.8% over the past month to close yesterday’s trading session at $26.75. Furthermore, it is currently trading 35.6% below its 52-week high of $41.56, which it hit on November 30, 2021. So, LAC’s near-term prospects look bleak.
