Q: COULD YOU COMMENT ON LAC"S LATEST NEWS. DOES THE NEWS WARRANT SUCH A SUBSTANTIAL DROP IN VALUE. THANKS
5i Research Answer:
The drop is warranted because of the big discount on the offering of shares. That being said, the discount might have been larger than warranted. The discount and size were of a surprise to investors, certainly, even more so since the company just got a $2.26B loan. Investors do not like dilution. The stock is trading below $5US, which implies the deal is having trouble being sold.