The need for lithium is growing and vehicle producers like Tesla and Ford also prefer using lithium in some of their vehicles including the Tesla Model 3 Standard Range Plus and the Ford Model Y Standard Range.
To help meet this growing demand, Piedmont Lithium (NASDAQ:PLL) and Sayona Mining (SYAXF) have recently signed a merger deal to create a collaboration entity and become the largest lithium producer in North America.
This results to 50: 50 ownerships split between the shareholders of the two merged entities. The merger will create synergies and simplify corporate structure.
As part of the merger both entities plan to raise a total of approximately US$99 million in equity with Piedmont Lithium to raise around US$27 million while Sayona Mining will raise A$40 million (approximately US$27 million). And after the merger, there will be an additional conditional placement of A$69 million to Resource Capital Fund VIII L.P. (RCF VIII).
After the merger is completed, the new entity will maintain the listings on both the ASX and NASDAQ, rather than Piedmont and Sayona being listed separately.
You can make more informed investment decisions. Visit GuruFocus today and dive deeper into Piedmont and Sayona Mining's performance with Charts & Guru Insights
This article first appeared on GuruFocus.免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。