LITHIUM AMERICAS C (OTCMKTS:LACDF) is a prime example of the current lust for lithium stocks around the world. The theme is notoriously tied to speculative – but likely well-grounded – assumptions about rising demand for lithium-ion batteries for use in electric cars, among other innovations, and simultaneously raising concerns about the supply of lithium. Hence, the speculative boom for those companies linked to LI production. That boom is helping to foster an air of success and credibility for this company’s, as it always does. In that vein, the company just announced that it has applied for a major uplisting onto the NYSE American Exchange (you may still think of it as the AMEX).
According to the release, “in connection with the planned U.S. listing, and as previously authorized by its shareholders, the Company is implementing a consolidation of its outstanding common shares. The Company’s board of directors has determined that the consolidation will be effected on the basis of one new common share for every five currently outstanding common shares. The consolidation will take effect on November 8, 2017 and the Company’s common shares are expected to commence trading on the Toronto Stock Exchange on a post-consolidation basis beginning at the open of markets on November 8, 2017.”
LITHIUM AMERICAS C (OTCMKTS:LACDF) frames itself as a company that is developing the Cauchari-Olaroz lithium project, located in Jujuy province, Argentina, and the Lithium Nevada project (formerly Kings Valley project) in Nevada, U.S.A, with the intent to become a major supplier of lithium products.
In addition, Lithium Americas is a supplier of specialty drilling additives, Hectatone and other organoclay products for the oil and gas and other industries.
LACDF is a resource player that engages in the acquisition, exploration, and development of mineral properties in Nevada. The company explores for lithium deposits. As noted above, the company primarily holds interests in the Cauchari-Olaroz Project located in Jujuy province of Argentina; and the Lithium Nevada Project covering approximately 15,233 hectares of area located in northwestern Nevada.
Find out when $LACDF stock reaches critical levels. Subscribe to OracleDispatch.com Right Now by entering your Email in the box below.
As noted above, the company has been riding high during the recent speculative boom in lithium-related stocks. The next step is an uplisting onto a more established US exchange – in this case, the NYSE American Exchange is the target.
According to the company’s related release, “there are currently 442,281,126 common shares issued and outstanding, and it is expected that there will be 88,456,225 common shares issued and outstanding following the consolidation, subject to rounding for any fractional shares. No fractional shares will be issued as a result of the share consolidation. Fractional interests of 0.5 or greater will be rounded up to the nearest whole number of shares and fractional interests of less than 0.5 will be rounded down to the nearest whole number of common shares.”
In announcing the application to list on a U.S. stock exchange, Lithium America’s CEO, Tom Hodgson, commented: “We look forward to a U.S. listing for Lithium Americas. We believe the share consolidation and U.S. listing will improve trading liquidity of our common shares and enable us to broaden our shareholder base.”
Recent action has seen 7% piled on for shareholders of the stock during the trailing month. This is emblematic of the stock. LACDF is a stock whose past is littered with sudden rips. What’s more, the name has seen a growing influx of trading interest, with the stock’s recent average trading volume running 60% above its longer-run average levels.
Currently trading at a market capitalization of $446.1M, LACDF has a significant war chest ($64.9M) of cash on the books, which must be weighed relative to about $225K in total current liabilities. LACDF is pulling in trailing 12-month revenues of $4.6M. In addition, the company is seeing recent top-line growth, with sequential quarterly revenues growing at 40.3%. This is an exciting story, and we look forward to a follow-up chapter as events transpire. Sign-up for continuing coverage on shares of $LACDF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $LACDF, either long or short, and we have not been compensated for this article.