CleanTech Lithium (LSE:CTL) has secured approximately £4.77 million through an oversubscribed placing of 79.51 million new shares priced at 6p each. The majority of the placing was supported by existing institutional shareholders, alongside participation from several new investors. The fundraising also includes warrants exercisable at a 50% premium, subject to the necessary regulatory approvals.
Proceeds from the placing will be directed toward completing the Laguna Verde licence acquisition, progressing environmental impact assessment activities, enhancing direct lithium extraction technology and engineering work, funding costs associated with a planned ASX dual listing, and supporting general working capital requirements. The capital raise will also help the company continue its strategic partner selection process and facilitate further admissions of new shares to AIM, including a broker option of up to £600,000 to satisfy additional investor demand.
Shareholder approval sought for second tranche
The fundraising consists of two components: a firm placing completed under existing shareholder authorities and a conditional placing that requires approval at a general meeting scheduled for 1 July. Shareholders will also be asked to approve the issuance of warrants and additional shares linked to both the retail offer and the broker option.
Athos Capital, one of the company’s largest shareholders, has committed to subscribing for a significant portion of the conditional placing shares. The transaction is being undertaken on related-party terms that the board’s nominated adviser has determined to be fair and reasonable. Following the first admission of shares, CleanTech Lithium’s enlarged issued share capital will total 307,983,841 ordinary shares, establishing a new benchmark for voting-rights notifications under FCA regulations.
Financial challenges offset by positive technical indicators
Despite progress on project development and financing, CleanTech Lithium remains in a pre-revenue stage and continues to report increasing losses alongside negative operating and free cash flow. These factors indicate an ongoing dependence on external financing, although the company maintains only moderate levels of leverage.
Technical indicators present a more positive picture. The share price continues to trade above its key moving averages, while MACD and RSI signals remain supportive. However, valuation metrics are still constrained by the absence of earnings, reflected in a negative price-to-earnings ratio and a lack of dividend yield.
More about CleanTech Lithium PLC
CleanTech Lithium PLC is focused on developing sustainable lithium projects in Chile to support the growing demand for battery materials and the global energy transition. Listed on both AIM and the Frankfurt Stock Exchange, the company’s portfolio includes the Laguna Verde and Viento Andino projects, along with the early-stage Arenas Blancas asset. These projects are located within the lithium-rich Atacama region, part of South America’s renowned lithium triangle.
Leave a Reply