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Lithium Americas Corp. (NYSE:LAC, TSX:LAC) announced Wednesday it has entered into an Equity Distribution Agreement with TD Securities (USA) LLC, allowing the company to offer and sell up to $250 million of its common shares through an at-the-market (ATM) equity program.
Under the agreement, Lithium Americas is not required to sell any shares but may instruct the agent to sell shares from time to time, subject to specified price, time, or size limits. The shares may be sold by methods permitted under applicable law, including direct sales on the New York Stock Exchange or other existing trading markets.
The common shares will be issued under the company’s shelf registration statement on Form S-3, which was declared effective by the U.S. Securities and Exchange Commission (SEC) on May 23, 2025. A prospectus supplement covering the ATM program was filed with the SEC on Wednesday.
TD Securities (USA) LLC will act as sales agent and/or principal, receiving a commission of up to 3.0% of the gross proceeds from each sale. The agreement also provides for reimbursement of legal fees and indemnification of the agent. The program will remain effective until all shares are sold or the agreement is otherwise terminated.
Lithium Americas stated it intends to use net proceeds from any share sales for general corporate purposes. These may include funding a portion of a $120 million reserve account related to a previously announced loan with the U.S. Department of Energy, corporate and project overhead, capital expenditures, repayment of debt, and additions to working capital.
The company intends to rely on the exemption in Section 602.1 of the Toronto Stock Exchange Company Manual, which allows certain eligible interlisted issuers to bypass some TSX standards for such transactions.
This information is based on a press release statement and the company’s SEC filing.
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