Piedmont Lithium (ASX:PLL) shares in trading halt after proposed US public offering

Piedmont Lithium Ltd (ASX: PLL) shares have been put into a trading halt after the mining company announced a US public offering.

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Lithium miner Piedmont Lithium Ltd (ASX: PLL) placed its shares in a trading halt today after announcing a US public offering. At the close of the previous day’s trade, shares in the dual-listed company were selling for $1.055. 

Let’s take a closer look at what Piedmont Lithium announced.

What did the company announce today?

In a statement to the ASX, Piedmont Lithium announced its plan “to conduct a U.S. public offering,” of up to 1.5 million of its American Depository Shares (ADS). 1 ADS will be the equivalent of 100 of its ordinary shares. As mentioned, the company placed shares in a suspension in anticipation of further announcements.

JPMorgan Chase & Co. (NYSE: JPM), Evercore Inc (NYSE: EVR), and Canaccord Genuity Group Inc (TSE: CF) will be joint book-runners and lead underwriters for the offering. As part of the agreement between Piedmont Lithium and the underwriters, each will have a 30-day option to purchase an additional 225,000 at the issue price.

Proceeds from the offering will be used to fund an expansion of Piedmont Lithium projects. These projects include further mineral exploration and investments in Sayona Mining Ltd (ASX: SYA) and its subsidiaries.

Piedmont will make the offering pursuant to the US Securities and Exchange Commission (SEC) regulations.

The company did not declare the price of the ADSs in the statement.

Piedmont Lithium is one of the fastest-growing companies on the ASX

As previously reported, the growth in the Piedmont Lithium share price has been exponential. Significantly, in the space of only 12 months, its share price has grown an astronomical 1,523.08%. Piedmont, in addition to other ASX lithium miners, has been going gangbusters over the past year.

The Piedmont Lithium share price and the lithium commodity price are correlated with each other. According to the website Trading Economics, lithium has a going price of US $85,000.00 a tonne. In other words, its price has risen an incredible 82.8% in the year-to-date alone.

Furthermore, as demand for electric vehicles is set to increase, the price of lithium is expected to continue on its upward trajectory. Lithium is a major component in the manufacture of car batteries.

Piedmont Lithium has a market capitalisation of $1.5 billion.

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Motley Fool contributor Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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