Lake had Barrenjoey and Canaccord Genuity seeking buyers for 214 million shares at 7¢ apiece, which was a steep 39.1 per cent discount to the last close.
Lithium play Lake Resources sent out its brokers to source a $20 million shot in the arm on Monday, as its share price languishes 80.5 per cent lower than where it was 12 months ago.Lake Resources had Barrenjoey and Canaccord Genuity seeking buyers for 214 million shares at 7¢ apiece, which was a steep 39.
1 per cent discount to the last close. Morgans was mandated as the co-lead manager. The cash call was split as a $15 million placement and a $5 million share purchase plan. Bids into the placement were due 4pm. Fund managers were told Lake Resources would use the proceeds to strengthen its balance sheet and liquidity profile, ahead of alternative financing for its flagship – and much delayed – Kachi project.has co-edited Street Talk since 2009, specialising in private equity, investment banking, M&A and equity capital markets stories. Prior to that, she spent 10 years in London as a markets and M&A reporter at Bloomberg and Dow Jones.is a co-editor of the Street Talk column. Prior to that, she was a markets reporter at The Australian Financial Review.The collapse of Lake Resources and poor performance of BrainChip and Imugene shows why there’s no place for penny stocks in a serious sharemarket index.The company also disclosed that its chief executive, David Dickson, had agreed to pay a $US100,000 civil penalty in the US, sending shares diving.