Shares in this article
by Ralf Witzler, Euro am Sonntag
The story is peppered with a number of stimulating words that make stock marketers sit up and take notice. Lithium hydroxide is used in batteries for e-mobility. The planned location is only a few kilometers from Tesla’s gigafactory. Elon Musk will soon be producing cars and battery cells there. The rock-tech facility would also be in the immediate vicinity of a potential bulk buyer. The German-Canadian company also has its own lithium mine in Ontario, which is supposed to supply the raw material for the production of around 24,000 tons of lithium hydroxide per year. An amount that, according to the company, is enough for around half a million electric cars. Around 470 million euros are to be invested in Guben.
As a rule, such funds are used raised in a mix of equity and debt capital as well as public funding. In order to get financing going, purchase agreements are important. Such a contract would cause the share price to rise and offer the opportunity to raise equity with less dilution for existing shareholders. Debt capital can flow because the evidenced acceptance provides security. In any case, Frankfurt’s financial circles say that part of the required funding has already been approved, if not even flowed. If there is now an acceptance contract, the second stage of the price rocket would certainly be ignited.
More news about Rock Tech Lithium Inc
Image sources: 123RF, Deutsche Börse