Lithium Americas, GM Face Delays In Closing $330M Deal: 'Mutually Beneficial' Solutions Under Review
Portfolio Pulse from Surbhi Jain
Lithium Americas Corp and General Motors Co are facing delays in closing their $330 million Tranche 2 investment due to Lithium Americas' low share price, which could lead to high dilution. Both companies are seeking mutually beneficial solutions, with the decision-making process extended until year-end. The delay also impacts the timeline for a critical DOE loan for the Thacker Pass project, affecting GM's EV plans.
September 05, 2024 | 2:12 pm
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NEGATIVE IMPACT
General Motors' $330M investment in Lithium Americas is delayed due to low share prices, affecting its EV plans and the DOE loan for Thacker Pass.
The delay in the investment due to low share prices affects GM's strategic plans for EV production and the DOE loan, which is crucial for securing lithium supply.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Lithium Americas faces potential high dilution from GM's investment due to low share prices, delaying the $330M deal and impacting the DOE loan for Thacker Pass.
The delay in the $330M investment due to low share prices could lead to high dilution for Lithium Americas, affecting its financial stability and the critical DOE loan for Thacker Pass.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90