Why Lithium Americas Stock Crashed 8% Today

·2 min read
Why Lithium Americas Stock Crashed 8% Today

After soaring 13% Monday on the back of an optimistic note from analysts at National Bank Financial, shares of lithium mining stock Lithium Americas Corp (NYSE: LAC) came crashing back down to Earth on Wednesday, falling 8.6% through 3 p.m. ET. In an after-hours announcement yesterday, Lithium Americas said it will be offering at least $225 million -- and potentially as much as $258.75 million -- worth of "convertible senior notes due 2027" paying a yet-to-be-determined interest rate. Lithium Americas intends to use the proceeds from this debt issuance "to repay its indebtedness" to multiple parties and also "for general corporate purposes."

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