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Message: $500 Million Shelf Offering

Have been reading some comments about that shelf offering elsewhere, just wondering what everyone here thinks about it.  I have stated previously that it is just another tool in the tool box for LAC and that it doesn't mean that LAC Admin has to use it, however I agree with one other person who stated elsewhere that LAC might wait until there is positive news, real news, and follow up an expected share price rise with an announcement about executing part of the shelf offering, i.e. adding a bit of "dilution" to counter weignt the elation that would come with positive news about an Off Take contract or other positive event.  That strategy is often used by companies when they have a Shelf Offering in the wings... they hold on to it and don't play that card until they can try to counterweight the bad new of a stock dilution with some good news about the company in general.  A very common strategy.  I would hope that won't be the case with LAC, but I have seen this happen before with other companies.  Like any other "game", the company only has so many moves and so many ways to present a stock dilution... this one, should they do it, would be like the song:  "A little bit of Sugar makes the Medicine go Down".  

If I am right about this strategy it would lead credence as to why LAC hasn't increased the available stock shares yet, even though they have the Shelf Offering.  If I were CEO and I really wanted to play the Shelf Offering card, I would definitely wait until the Share Price took a significant up tick.  On the other hand, we have had a recent huge Up Tick in the Share Price and LAC management didn't play that Shelf Offering Card in that circumstance.  Maybe the reason that the didn't is because they knew that the huge Up Tick in Share Price was illusory and manufactured by hype and speculation?  

Pure speculation on my part, but we don't want to forget that that Shelf Offering is out there as a card that LAC management can play at will. 

"The terms of future offerings, if any, will be established at the time of such offerings."

"Tom Hodgson, CEO of Lithium Americas, commented, “While we have no immediate plans to raise capital, the shelf prospectus represents a prudent step to add financial flexibility and efficiently access capital markets as the Company pursues future growth opportunities in Argentina, Nevada and elsewhere.”

https://markets.businessinsider.com/news/stocks/lithium-americas-announces-filing-of-canadian-base-shelf-prospectus-and-u-s-shelf-registration-statement-1013223822#

Anyone else with thoughts about this?

 

 JMO  Okiedo

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Oct 17, 2020 02:49AM
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