Snow Lake Resources (NASDAQ:LITM) rocketed up nearly 150% intraday Friday in its first trading session following an upsized IPO that priced at the top of its expected range at $7.50 per share.
LITM traded as high as $18.42, up 145.6% from the top-of-range $7.50 that its initial public offering priced at. Shares later pulled backed, but still ended the day 73.3% higher at $13.
The rally pushed LITM’s non-diluted valuation up from about $120M at IPO to around $208M, although that still makes the stock relatively small and open to big price swings.
Snow Lake’s IPO priced at the top of its expected $6.50-$7.50/share range. The company also sold 3.2M shares through its IPO, up from the roughly 2.9M it had originally offered. Additionally, LITM boosted underwriters’ overallotment options to 480,000 shares from the roughly 428,600 initially planned.
Snow Lake (LITM) soared even though the company, which aims to develop ecofriendly lithium mining for EV batteries and other green applications, has yet to begin production or generate noteworthy revenues.
The firm hopes to build a major mining operation on the so-called Thomson Brothers site in Canada’s Manitoba province. Tests of the parcel some 50 years ago indicated possible significant deposits of lithium, a key component for the cutting-edge batteries used in electric cars and other green devices.
LITM wrote in an F-1 filing with the U.S. Securities and Exchange Commission that it launched a preliminary economic assessment of the site in Q3 and hopes to begin mining at the site in 2023.
The company aims to build what it bills as the world’s first all-electric mining operation, which will itself work in an ecofriendly manner.
“Snow Lake is committed to being the first fully renewable energy-powered electric mine in the world that can deliver fully traceable, conflict free, net zero carbon, battery grade lithium to the electric vehicle consumer market,” LITM wrote in its filing.