LTHU had a tremendous session on Friday - a 100.89% increase in the price on a new volume high of nearly 15 million shares. Some traders had hoped the run would resume yesterday, but they were unpleasantly surprised with the 12.67% drop on 7 million shares, which left the closing price at $0.0393.
The agreement signed is supposed to provide $10 million of new capital for LTHU. Half to be in the form of a common equity purchase (including the $2 million in October), and the other half - in the form of a committed convertible loan facility. If, at some point in the future, the latter is fully funded and converted into common shares, the FN Group will have a 35% stake in LTHU.
Where things will go from here is not yet clear, but the capital is definitely something LTHU needed. The PR suggests the money will be used for construction of a volume production facility and "general corporate development", but according to the 10-K LTHU had a negative working capital in excess of $10 million.
Yesterday's pullback may just be the beginning of LTHU's way down, at the same time it may just be a normal market reaction after the 100%+ session. The $155 million accumulated deficit can also be interpreted in different ways. It indicates the company has lost a huge amount of money up to date, but also it shows there are investors who believe there is potential in the future of LTHU.
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