Lithium Americas Corp. has entered into a Securities Purchase Agreement with an investor, YA II PN, Ltd., to issue and sell up to $175 million in subordinated convertible debentures. This financing is intended to provide additional financial flexibility as the company advances the construction of its Thacker Pass lithium project.
Key Details
- Agreement: The company entered the agreement on August 5, 2026, to sell up to $175 million in subordinated convertible debentures.
- Financing Structure: An initial $150 million in debentures will be issued, with an option for the company to sell an additional $25 million at a later date.
- Use of Proceeds: Funds will support general corporate purposes, including project overhead, capital expenditures, and working capital for the Thacker Pass project.
- Key Terms: The debentures have a 5-year maturity with a 5% annual interest rate. The conversion price is the lower of a fixed price or 95% of the 5-day volume-weighted average price (VWAP), subject to a floor price. The number of common shares issuable upon conversion is capped at 19.99% of outstanding shares unless shareholder approval is obtained.