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.
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