LTHU had a tremendous session on Friday – a 100.89% increase in the price on a new volume high of nearly 15 million shares. Some traders had hoped the run would resume yesterday, but they were unpleasantly surprised with the 12.67% drop on 7 million shares, which left the closing price at $0.0393.
The agreement signed is supposed to provide $10 million of new capital for LTHU. Half to be in the form of a common equity purchase (including the $2 million in October), and the other half – in the form of a committed convertible loan facility. If, at some point in the future, the latter is fully funded and converted into common shares, the FN Group will have a 35% stake in LTHU.[BANNER]
Where things will go from here is not yet clear, but the capital is definitely something LTHU needed. The PR suggests the money will be used for construction of a volume production facility and “general corporate development”, but according to the 10-K LTHU had a negative working capital in excess of $10 million.
Yesterday’s pullback may just be the beginning of LTHU’s way down, at the same time it may just be a normal market reaction after the 100%+ session. The $155 million accumulated deficit can also be interpreted in different ways. It indicates the company has lost a huge amount of money up to date, but also it shows there are investors who believe there is potential in the future of LTHU.
