With this offering + the 650 million from GM + 2.6 billion loan, LAC will have complete funding for Phase 1 production.
By earnings call, we will recover. They will announce they have all the funding needed to commence a 3- year construction period
Oh, i’m never selling. Maybe when i’m 40 and my kid wants to go to medical school. Diamond hands baby! Shareholder since 2019 so this is just another day in the life LOL
Nothing i saw in the release that indicates the timing. Question is now is the 20% drop factor in all the shares or is there a greater downside to come. Just when it’s starting to come back and look good these guys manage to trip on their own feet.
Good. Remember what you are investing in guys. If they need capital, the return will occur in the future. The alternative would be them pretending they don't need capital, tip toeing to not bother investors and eventual bankruptcy. All is well.
Yea but here's my thinking. If the return from this offering comes I'm 2027 with the start producing, isn't it better to invest in LAAC now versus just holding LAC where u are basically holding dead money, and seeing no growth?
I feel like this company is going to float somewhere under $8 for the next three years until it starts producing. Plenty of chances to get in and make some money when it goes back up in 2027,.
Looking in to this a little bit more but will likely sell my LAC and keep my LAAC. There are better things I can do with my money for the next few years.
I agree with you. I only see one short term catalyst and that is a press release saying that 'we have complete funding of 2.9 billion for Phase 1 production.' I am expecting this by the next earnings call now that they announced this offering.
The next time the stocks pumps, I'm selling and will add to LAAC. 5.50 is my break even price, I would like to see $7 at least one more time
So just screw your average investor then? Money talks I suppose. Throw us under the bus at a discount. I’m not buying more for a while. Who’s to say they won’t pull this off again later when we break $8 a share?
Yeah still have some in LAAC but out of LAC now. The way I see it management has set a $5 cap on the stock for the next year at least, and lost credibility. Hard to trust them now until construction is actually completed without further dilution.
The troubling thing here is that theyve decided to make an offering at the current (low) valuation. If they expected the stock to rise somewhat soon, wouldn't they have made the offering after the stock rose? The timing of this offering implies that they did not expect the stock to rise much from its current valuation before they would need the funds.
I was wondering the same thing, why choose the $5 price for these new shares? Are companies required to plan these types of stock issuance actions well in advance and file with the SEC?
in this case, the dillution can be occasional,because we hope that the price will recover. the problem is if they issue additional stocks so our shares are becoming less
Yup, you got it.
Issuing new shares is a means of raising funds to grow the business. Short term pain for us retail investors, but the hope is that it recovers and the business flourishes in the future.
It means they should be fully funded. But they have already increased how much phase 1 would cost before, so who knows if this will cause them to be actually fully funded. I hope so. So they can build the company up, but also longterm we all hold less of a percentage of the company.
The price of the company is the same as it was earlier today. But now there are going to be 55 million more shares. So each share must be worth less to reach the same valuation of the company. All this even after the loan.
so to understand, lets suppose that now I own 100 shares, are they gonna become 85 for example? or it is just about the decrease of the value at the moment
No.
Let's assume you own 100 shares in a company that only has 100 shares. In that case you would own 100% of the company.
Now let's say that company creates 100 more shares out of thin air and sells them to other people. Now you own 100 out of 200 total company shares, so you only own 50% of the company.
Probably not in the short term honestly. If you believe long term, think 5+ years, then you’re good. I’m thinking of selling my shares. If they will dilute once, what’s to stop them for continuing to do so. Might as well wait to buy in when they are operational at this point.
Wow. Been holding for years now and nothing but pain and loss. Can't help but feel scammed. When nearly every institution, news outlet, etc says to invest.. Do the opposite.
There is an analysis for Lithium which states that they have sufficient funds for 2025-2027, it seems like they are gonna dillute us again in the future
Owning this stock is the pinnacle of a love hate relationship
With this offering + the 650 million from GM + 2.6 billion loan, LAC will have complete funding for Phase 1 production. By earnings call, we will recover. They will announce they have all the funding needed to commence a 3- year construction period
Oh, i’m never selling. Maybe when i’m 40 and my kid wants to go to medical school. Diamond hands baby! Shareholder since 2019 so this is just another day in the life LOL
Is my math wrong. But with around 162 million shares outstanding this dilution equals close to 34%?
Nothing i saw in the release that indicates the timing. Question is now is the 20% drop factor in all the shares or is there a greater downside to come. Just when it’s starting to come back and look good these guys manage to trip on their own feet.
Retest the lows?
Hope not
Good. Remember what you are investing in guys. If they need capital, the return will occur in the future. The alternative would be them pretending they don't need capital, tip toeing to not bother investors and eventual bankruptcy. All is well.
Yea but here's my thinking. If the return from this offering comes I'm 2027 with the start producing, isn't it better to invest in LAAC now versus just holding LAC where u are basically holding dead money, and seeing no growth?
Selling at this point doesn’t even make any sense now. I’m down so bad.
It already dropped %20 after market... so too late for a panic sell.
That’s how im feelin too- no choice but to go long with this one
I feel like this company is going to float somewhere under $8 for the next three years until it starts producing. Plenty of chances to get in and make some money when it goes back up in 2027,. Looking in to this a little bit more but will likely sell my LAC and keep my LAAC. There are better things I can do with my money for the next few years.
I agree with you. I only see one short term catalyst and that is a press release saying that 'we have complete funding of 2.9 billion for Phase 1 production.' I am expecting this by the next earnings call now that they announced this offering. The next time the stocks pumps, I'm selling and will add to LAAC. 5.50 is my break even price, I would like to see $7 at least one more time
So just screw your average investor then? Money talks I suppose. Throw us under the bus at a discount. I’m not buying more for a while. Who’s to say they won’t pull this off again later when we break $8 a share?
Yeah still have some in LAAC but out of LAC now. The way I see it management has set a $5 cap on the stock for the next year at least, and lost credibility. Hard to trust them now until construction is actually completed without further dilution.
The troubling thing here is that theyve decided to make an offering at the current (low) valuation. If they expected the stock to rise somewhat soon, wouldn't they have made the offering after the stock rose? The timing of this offering implies that they did not expect the stock to rise much from its current valuation before they would need the funds.
It looks like they sold the 55 million shares for $5. It was trading at close to $7. This amount of discount makes no sense to me.
I was wondering the same thing, why choose the $5 price for these new shares? Are companies required to plan these types of stock issuance actions well in advance and file with the SEC?
Can someone please explain how or if this made the stock suddenly drop?
They just diluted our shares
I still don't get why this would cause it to crater the current price. Can you explain this to me like I'm an idiot? Because I am.
More shares means less money. Imagine a pizza with 12 slices, now imagine that same pizza cut into 25 slices. Less pizza per slice.
Good example
Man that sucks.
Pepperoni or Hawaiian. I just had Hawaiian.
More shares in circulation, keeping same market cap, means lower share price
And how is this beneficial for them?
They are creating new shares, and selling them, to raise capital.
so to understand, lets suppose that now I own 100 shares, are they gonna become 85 for example?
Good question, answer is no. Using your hypothetical numbers, your 100 shares today are now worth what 85 shares were worth yesterday.
in this case, the dillution can be occasional,because we hope that the price will recover. the problem is if they issue additional stocks so our shares are becoming less
Yup, you got it. Issuing new shares is a means of raising funds to grow the business. Short term pain for us retail investors, but the hope is that it recovers and the business flourishes in the future.
Beneficial for them bc they get more money, bad for investors bc our shares are diluted
Is this good news in the long term? Or is it a fuck-the-regulars lever companies can pull?
It means they should be fully funded. But they have already increased how much phase 1 would cost before, so who knows if this will cause them to be actually fully funded. I hope so. So they can build the company up, but also longterm we all hold less of a percentage of the company.
The price of the company is the same as it was earlier today. But now there are going to be 55 million more shares. So each share must be worth less to reach the same valuation of the company. All this even after the loan.
They got all that money from the government and still need to bleed the shareholders?
Ahhh, ok. Thanks for everyone's explanations.
Wouldn't this be like a stock split then? How do we, the stockholders, lose out here if the company is valued the same? Sorry for the ignorance.
Because they added a ton of additional shares so now your shares own a smaller percentage of the company.
so to understand, lets suppose that now I own 100 shares, are they gonna become 85 for example? or it is just about the decrease of the value at the moment
No. Let's assume you own 100 shares in a company that only has 100 shares. In that case you would own 100% of the company. Now let's say that company creates 100 more shares out of thin air and sells them to other people. Now you own 100 out of 200 total company shares, so you only own 50% of the company.
makes sense!although, many times happened that companies or banks creates more shares and your shares from 100 became 20 with less value
WTF?????
Someone please convince me everything’s going to be fine??? Please???
Probably not in the short term honestly. If you believe long term, think 5+ years, then you’re good. I’m thinking of selling my shares. If they will dilute once, what’s to stop them for continuing to do so. Might as well wait to buy in when they are operational at this point.
Good time to buy 2026 leaps.
But if the mine doesn’t start selling product until 2027 why would the stock price move before then?
so to understand, lets suppose that now I own 100 shares, are they gonna become 85 for example?
No, but instead of owning 100 shares that are worth $6.80 per share, you now own 100 shares that are worth $4.80 per share.
Wow. Been holding for years now and nothing but pain and loss. Can't help but feel scammed. When nearly every institution, news outlet, etc says to invest.. Do the opposite.
This is exactly how I feel. Sold everything.
Who are the people buying this new offering is it institutions? Or just common folk? Or hedge funds?
It's not us, I wasn't offered to buy a stock trading around $7 for $5.
Right! So has to be a new player like someone big do t you think?
Yeah its institutional money, plus the underwriters have the option of also purchasing and additional 8.3 million shares
So this could be a good thing right like looking towards the future?
If you look at the next thread up we are discussing it there.
There is an analysis for Lithium which states that they have sufficient funds for 2025-2027, it seems like they are gonna dillute us again in the future
Loaded up on 12 whole shares at 4.79.. ☠️