市场见解

Here’s why the Leigh Creek (ASX:LCK) share price is crashing 8% downstream today

What did the company announce?
The post Here’s why the Leigh Creek (ASX:LCK) share price is crashing 8% downstream today appeared first on The Motley Fool Australia. –

The Leigh Creek Energy Ltd (ASX: LCK) share price is one of the worst performers on the ASX this morning. This comes after the energy producer announced an institutional share placement to a United States-based investor.

At the time of writing, Leigh Creek Energy shares are down 8.57% to 16 cents.

What are the details of the placement?

Investors are driving down the Leigh Creek Energy share price today as the company is set to dilute shareholder value.

According to its release, Leigh Creek Energy advised it has secured up to $20 million (before costs) through a placement. The leading investor in energy transitions, Energy Exploration Capital Partners, LLC is the sole participant in the equity raise.

There will be 3 different phases to the placement. The initial issuance of 14.8 million shares will see net proceeds of $7.5 million handed to Leigh Creek Energy. It will be priced at the average of the 5 daily volume-weighted average prices (WVAP) less a 10% discount.

Following on, the second and third phases may take place provided that the market price for the company’s shares don’t fall below 8.5 cents. Leigh Creek Energy could potentially receive further net proceeds of $3.9 million and $3.6 million respectively. The latter is subject to shareholder approval, which is expected to be sought within the next 3 months.

Additionally, another $5 million is available with consent from Energy Exploration Capital Partners.

Leigh Creek Energy will use the funds from the placement for a number of key aspects of its flagship project. The Leigh Creek Urea Project (LCUP) will see stage 1 onsite works followed by ongoing stage 2 study and development costs.

Leigh Creek Energy managing director, Phil Staveley, commented:

This is the next, vital, stage in our overall, larger project funding strategy, which will be executed over the course of the next year. EECP originally invested in LCK 12 months ago, based on our prospects at that time. LCK has achieved a lot since then.

It is a testament to our performance that EECP are not only still shareholders but that today they are also prepared to invest a larger additional amount.

Leigh Creek Energy share price summary

Since this time last year, the Leigh Creek Energy share price has largely moved in circles and registered a loss of 5.88%.

Leigh Creek Energy commands a market capitalisation of roughly $133.4 million and has approximately 847.1 million shares on issue.

The post Here’s why the Leigh Creek (ASX:LCK) share price is crashing 8% downstream today appeared first on The Motley Fool Australia.

Should you invest $1,000 in Leigh Creek Energy right now?

Before you consider Leigh Creek Energy, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Leigh Creek Energy wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

MoneyMe (ASX:MME) share price spikes on $132 million acquisition news

ASX 200 (ASX:XJO) midday update: BNPL shares sold off, Corporate Travel returns

Zip (ASX:Z1P) share price dives 8% amid US concerns and Sezzle merger rumbles

Invested in VAS shares? Here’s what to watch in 2022

EML (ASX:EML) share price plunges on vow to ‘vigorously defend’ against class action

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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.

随时随地,交易世界!

移动APP平台,拥有 12 个市场的 50,000 多种全球上市证券(全球市值超过 70%),直接在您的 Android 或 iOS 设备上即可操作。

与独有的交易理念和投资分析工具相结合,帮助您在我们 12 个全球市场中的几乎所有金融工具上找到可操作的见解,从而帮助您优化交易策略。

推荐给您的朋友

向您的朋友推荐Monex并赠予他们免费使用我们交易工具的机会

我们尊重您的隐私,只会向您的朋友发送一封邮件 

与您的朋友分享

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!