Marechale Capital Plc (LON: MAC) shares soared 118% after completing a fundraising round with Weardale Lithium Ltd (‘WLL'), resulting in Marechale holding 8.7% of the lithium company’s outstanding shares.
The corporate finance company’s shares surged after revealing that its stake in WLL was worth £1.5 million, excluding additional undated warrants awarded as part of its transaction fees.
WLL is a lithium exploration and development business based in the Weardale Valley, County Durham making it one of the first lithium exploration companies in north England.
Weardale Lithium is expected to benefit from the predicted surge in demand for lithium used in electric batteries that will power most vehicles by the year 2030, with Marechale sharing in the profits generated based on its stake in the lithium producer.
Patrick Booth-Clibborn, Marechale Capital’s CEO, commented: “This transaction is an exciting addition to the Marechale portfolio and bolsters our exposure to the renewable energy markets. As the UK and Europe set their sights on a carbon-neutral future, the role of lithium in electric vehicles and green technologies will continue to grow in importance, and we are delighted to have assisted Weardale Lithium Limited as it starts to explore the presence of lithium in the north of England.”
Marechale is keen to strengthen its balance sheet via new corporate finance projects and has lined up an impressive pipeline of such deals that should materialise in the future.
The corporate finance company has fine-tuned its deal-making abilities to receive founder level shares that are usually worth a lot more than regular shares. The main advantage of such shares is that they are rarely diluted in future fundraising activities.
Marechale also managed to get undated warrants to go along with its founder-level shares and is entitled to more shares if it participates in future fundraising activities.
Marechale share price.
Marechale shares soared 118.79% to trade at 3.61p, rallying from Friday’s closing price of 1.65p.
Should you invest in Marechale Capital shares?
Marechale Capital shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are MAC shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies