Piedmont Lithium Ltd (ASX:PLL) (NASDAQ:PLL) has completed an underwritten US public offering of 2 million of its American Depositary Shares (ADS) each representing 100 of its ordinary shares at an issue price of US$25 per ADS for gross proceeds of US$50 million (A$70.6 million).
Proceeds from the offerings will be used to continue development of the company’s Piedmont Lithium Project in the Carolina Tin-Spodumene Belt in the US, including the definitive feasibility study.
Funds will also be used for test-work, permitting, further exploration drilling and ongoing land consolidation, as well as for general corporate purposes.
Discount to VWAP
The issue price of US$25 (A$0.353) per ADS represents a 13% discount to the 20-day VWAP on the ASX of A$0.406.
The ADSs are expected to be issued on October 23, 2020.
Evercore ISI, Canaccord Genuity and ThinkEquity, a division of Fordham Financial Management Inc, acted as joint book-runners for the offering while Loop Capital Markets and Roth Capital Partners are acting as co-managers.
Piedmont has agreed to grant the underwriters a 30-day option to purchase up to an additional 300,000 ADSs at the issue price of the offering.
The offering is being made pursuant to an effective shelf registration statement that has been filed with the US Securities and Exchange Commission (SEC).