European Lithium's Share Sale Sparks Stock Plunge, Buyback Launched
European Lithium has sold shares in Critical Metals Corp., leading to a significant drop in its own stock price. The company has since announced a share buyback program to stabilize its share value.
The sale involved 3 million shares, sold at a 12% discount to a single US institutional investor for $7 each. This transaction brought in a net $21 million (AUD $31.75 million), bolstering European Lithium's financial position. However, the sale triggered a panic reaction among investors, causing European Lithium's stock price to plummet by 33%, reaching a low of 16.7 cents.
In response to this market reaction, European Lithium has launched a share buyback program. The company aims to purchase up to 135 million of its own shares, a move intended to optimize its capital structure and stabilize its share price.
The sale of shares in Critical Metals Corp. has had a notable impact on European Lithium's stock price. The company's share buyback program is now underway, with the aim of restoring investor confidence and stabilizing the share price.
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