Piedmont Lithium Ltd (ASX:PLL) (OTCMKTS:PDDTF) (FRA:PL4) has completed an underwritten public offering of 1.75 million American Depository Shares (ADS) at US$70 each to raise US$122.5 million (A$159 million).
Proceeds will be used to continue development of the world-class Piedmont Lithium Project in North Carolina.
This work includes definitive feasibility studies (DFS), test-work, permitting, further exploration drilling, mineral resource estimate updates and ongoing land consolidation to fund the strategic investments in Sayona Mining Ltd (ASX:SYA) and Sayona Quebec Inc.
Each ADS represents 100 ordinary shares and will be issued under the ASX Listing Rule 7.1. They are expected to be issued on March 25, 2021, with the issue price equivalent to A$0.909 per share representing a 3% discount to the VWAP of A$0.933.
Underwriters option to purchase additional shares
J.P. Morgan, Evercore ISI and Canaccord Genuity acted as joint book-runners for the public offering while BTIG LLC, B Riley Securities, Loop Capital Markets, Roth Capital Partners, Think Equity, a division of Fordham Financial Management Inc, Jett Capital Advisors and Tuohy Brothers acted as co-managers for the pubic offering.
Piedmont has granted the underwriters a 30-day option to purchase up to an additional 262,500 ADS’s at the issue price of the public offering.
Subject to orders being made by the Supreme Court of Western Australia, the company intends to issue supplementary disclosure to advise shareholders of the public offering and seek a later date for the scheme meeting to consider the approval of the scheme arrangement.
This will delay the timetable for the scheme of arrangement and shareholders will be advised of the timetable as soon as it is available.