The company is finalising commitments from investors for the placement under the new timeframe and is also seeking to finalise arrangements with the convertible securities holder.
Lake anticipates updating the market with secured commitments and the expects that voluntary suspension will be lifted on or about February 10, 2020.
A short-form cleansing prospectus is required and will be lodged at the same time to permit the free trading of shares issued in connection with the capital raising.
Focused on placement completion
Managing director Stephen Promnitz said, “Whilst this has caused a temporary delay in closing our proposed placement, we have been encouraged by the level of interest received which reflects renewed investment interest in the lithium sector.
“The importance of sustainability has focused interest in Lake given our recently announced success producing high purity lithium carbonate from the Kachi brines using the disruptive technology of Lilac Solutions’ direct extraction method.
“Engagement with battery and EV companies has ramped up pending larger quantities of samples being sent to potential off-takers.
“Our immediate focus is to complete this proposed placement and seek to reach a formal agreement for the early close out of the SBI convertible securities facility.
“The market has indicated that this would be seen positively given the upturn in the lithium sector.”
SPP to provide an opportunity for investment
Shares will remain in voluntary suspension until the company is able to lodge a cleansing prospectus and provide a further update to the market.
Lake remains committed to negotiating an early close out of convertible securities facility with SBI Investments through a combination of cash and the issue of shares, which will likely include an additional equity-based fee in consideration for the termination of the facility.
A share purchase plan (SPP) is also being formulated to provide existing shareholders with an equal opportunity to invest alongside sophisticated and professional investors on similar terms as the placement.