Vulcan Energy shares tank after $710m discounted equity raise
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The news: Shares in Vulcan Energy plunged in early trading after the lithium producer announced the completion of a €398 million ($710 million) institutional placement and entitlement offer.
The numbers: Vulcan shares were down 30.1% to $4.28 at 10:40am AEDT. New shares under the equity raising were issued at a fixed price $4 per share, representing a 34.7% discount to its last closing price of $6.13.
The retail component of the entitlement offer is expected to raise up to a further $366 million.
The context: Proceeds from the raise will support Vulcan’s Phase One Lionheart lithium and renewable energy project. The funds will supplement a $3.9 billion financing package, announced on Wednesday.
What they said: "We would like to thank our existing shareholders for their continued support and welcome our new shareholders onto the register, including strategic investors," said Vulcan's managing director and CEO Cris Moreno.
"The placement will enable Vulcan to transition from development phase into execution phase with project execution of Project Lionheart due to commence in the coming days."
The source: ASX
