Insights

The Sayona (ASX:SYA) share price is tumbling 5% today

The Sayona (ASX: SYA) share price is tumbling 5% today following the launch of a renounceable rights issue. Here are the details.
The post The Sayona (ASX:SYA) share price is tumbling 5% today appeared first on The Motley Fool Australia. –

A white arrow point down into the ground against a blue backdrop, indicating an ASX market crash or share price fall

The Sayona Mining Ltd (ASX: SYA) share price is tumbling today following the launch of a renounceable rights issue. In late afternoon trade, the emerging lithium miner’s shares are swapping hands for 3.7 cents, down 5.1%.

What did Sayona announce?

Investors are offloading the Sayona share price after the company announced a rights issue that will dilute shareholdings.

According to its release, Sayona advised it has launched a renounceable rights issue to raise up to $20.4 million before costs. The 1-for-6 offer will be available to all eligible shareholders with a registered address in Australia and New Zealand.

The company has determined the issue price to be 3.2 cents per share, representing a 10.5% discount on the 30-day volume-weighted average price (VWAP).

Sayona noted that its major shareholder, Piedmont Lithium Ltd (ASX: PLL), will participate in the rights issue.

The funds received will support the company’s growth plans in Québec, Canada. This entails advancing its flagship Authier Lithium Project and the upcoming Tansim Lithium Project together with Piedmont.

The rights issue will close on 20 April 2021, with the new ordinary shares to start trading on 28 April 2021.

Words from management

Sayona managing director Brett Lynch touched on the potential market opportunity, saying:

Québec offers enormous competitive advantages as a lithium producer and downstream processor due to its world-class infrastructure and labour, environmentally friendly hydropower and access to the fast- growing North American battery market.

This funding will help ensure we can cement our lithium projects as key to the region’s clean energy future, with the potential for clean and green lithium hydroxide production direct to Ontario automakers and North Carolina battery makers.

About the Sayona share price

Despite today’s fall, the Sayona share price has lifted more than 400% since this time last year. However, most of the strong gains came from the start of 2021 on the back of renewed optimism in the lithium market.

Sayona commands a market capitalisation of roughly $140 million, with more than 3.7 billion shares outstanding.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Aaron Teboneras 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.

The post The Sayona (ASX:SYA) share price is tumbling 5% today appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!