Due to the strong demand, the SPP and shortfall offer will close this week with funds to facilitate the development of sustainable and scalable direct extraction technology at the flagship Kachi Lithium Brine Project in Argentina.
Managing director Steve Promnitz said: “We are overwhelmed by the positive response from our current shareholders given the volatile markets and will keep shareholders updated with news in the coming months as the project progresses.
“The marketing in North America and the UK was well received.”
Any scale back to applications will be made on a pro-rata basis after the withdrawal period ends on March 28, 2020.
The recent private placement was also previously increased by $550,000 before costs, to a total amount of $3.9 million.
First supplementary prospectus
The prospectus dated February 10, 2020, and the supplementary prospectus dated February 28, 2020, details:
- Lake’s offer to all eligible shareholders to participate in the SPP by subscribing for up to $30,000 worth of new shares at an issue price of 4 cents per Share to raise up to $2.5 million, and
- A shortfall offer on the same terms as the SPP which provides the company with the ability to issue any shortfall under the SPP up to the maximum available under the SPP of $2.5 million.
Under the first supplementary prospectus, the company provided details of the recent placement and upsized share purchase plan as well as providing withdrawal rights for all SPP applications received on or before February 28, 2020, for a period of one month ending on March 28, 2020.
Waiver of ASX listing rule 7.40
As a result of the withdrawal period required by the Corporations Act, Lake was required to extend the closing date of the SPP offer and the shortfall offer in order to comply with ASX Listing Rule 7.40 and the timetable requirements set out in Appendix 7A.
The company has now been advised that the ASX has granted a waiver from ASX Listing Rule 7.40 which permits Lake to close the SPP offer and shortfall offer early, but does not require it to issue the SPP shares and shortfall shares (if any) and apply for quotation of such shares until after the withdrawal period has passed, which would be beyond the seven day period required by the Appendix 7A timetable.
It is a condition of the waiver that Lake issue the SPP shares and shortfall shares (if any) no more than seven business days after the withdrawal period has passed.
Early closing date
As a result of the oversubscriptions received in respect of the SPP offer and in reliance on the waiver, the company now proposes to close the SPP offer and shortfall offer early at 5.00pm (AEDT) on Friday, March 13, 2020.
This will provide shareholders a final opportunity to provide their applications to Lake prior to the close of the SPP offer and shortfall offer.
Secondary supplementary prospectus lodged
Lake has now lodged a second supplementary prospectus with the Australian Securities and Investments Commission which supplements the prospectus and first supplementary prospectus to amend the closing date of the SPP offer and shortfall offer - together with necessary amendments to the timetable as a result of the change to the closing date.