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Lucara Diamond ( (TSE:LUC) ) has issued an update.
Lucara has applied to the Toronto Stock Exchange for a financial hardship exemption to proceed with a previously announced non-brokered private placement of 1,031,250,000 common shares at $0.16 per share, raising gross proceeds of $165 million at a discount to recent market prices. The funding, in which entities controlled by the Lundin Family Trusts will participate significantly, is intended to bridge a liquidity shortfall and keep the Karowe underground project moving forward while longer-term financing is arranged, and because insider participation is large relative to Lucara’s market capitalization and the number of new shares exceeds TSX thresholds, the transaction requires TSX exemptive relief from normal shareholder approval rules, underscoring the company’s near-term financing pressure and the pivotal role of existing cornerstone investors.
The most recent analyst rating on (TSE:LUC) stock is a Buy with a C$0.32 price target. To see the full list of analyst forecasts on Lucara Diamond stock, see the TSE:LUC Stock Forecast page.
Spark’s Take on TSE:LUC Stock
According to Spark, TipRanks’ AI Analyst, TSE:LUC is a Outperform.
The score is driven mainly by strong profitability and a solid, low-leverage balance sheet, partially offset by negative free cash flow and weak cash conversion. Technicals show a clear uptrend but with overbought risk (RSI ~80.6). Valuation is supportive due to the very low P/E.
To see Spark’s full report on TSE:LUC stock, click here.
More about Lucara Diamond
Lucara Diamond Corp. is a Canadian diamond mining company listed on the TSX, BSE and Nasdaq First North Growth Market, best known for its Karowe mine in Botswana and its focus on producing and marketing high-value rough diamonds. The company is advancing the Karowe underground project to extend mine life and sustain production of large, high-quality stones for the global diamond market.
Average Trading Volume: 312,988
Technical Sentiment Signal: Hold
Current Market Cap: C$123.1M
For a thorough assessment of LUC stock, go to TipRanks’ Stock Analysis page.