New Stock Arbitrage — NEMASKA LITHIUM INC.
Here is a summary of our most recent Stock Arbitrage transaction that we have participated in. The stock involved were issued by Nemaska Inc., a lithium mining company located in Quebec, Canada. We short sell at $0.995 and repurchase at $0.975 to achieve a risk-free profit of $0.02 per share.Since the timing of the arbitrage operation ended in less than one hour, we could not inform everyone in time.
Nemaska Lithium Inc is a lithium mining company located in Quebec, Canada. The company is dedicated to the exploration and evaluation of lithium properties and further processing into lithium compounds, such as lithium hydroxide and lithium carbonate, and to electric vehicles, mobile phones, tablet computers and other consumer products. The manufacturer of the product supplies materials for the manufacture of lithium batteries.
Nemaska Lithium Inc. announced the issuance of 280,000,000 common shares to the public at an offer price of $1.00 per share for a total of $280,000,000 in fund-raising. The issuance is expected to end around May 30, 2018.
The fundraising will serve as a development fund for the commercialization of the company’s Whabouchi lithium mine project for capital expenditures, project contingency, working capital requirements and financing costs at the Whabouchi Mine and Shawinigan Electrochemical Plant and to meet the future operational needs of Nemaska Lithium Inc. The company expects to start production of the Whabouchi mine in the second half of 2019 and start production of the Shawinigan plant in the first half of 2020.
|Exchange||TSX, Toronto Stock Exchange|
|Issuer||Nemaska Lithium Inc.|
|Issue Size||280,000,000 common shares，the total fund-raising amount will be US$280,000,000. The underwriters shall have an over-allotment of 42,000,000 common shares for addition gross proceeds of US$322,000,000.|
|Issue Price||US$ 1.00 Per Share|
|Closing Date||On or about May 30th 2018|
|Underwriter||National Bank Financial Inc., BMO Capital Markets and Cantor Fitzgerald Canada Corporation.|
Since the timing of the arbitrage operation ended in less than one hour, we could not inform everyone in time.
From the point of view of several arbitrage opportunities so far this year, the timing of arbitrage after the IPO is getting shorter and shorter. If we follow the operations and investment models that we have formulated before, it will be difficult to have sufficient time to complete the investment. Therefore, the club will adjust the new share arbitrage model in the near future, hoping to allow more interested investors to participate, and the specific contents will be released as soon as possible. Please pay close attention.