- Last month readers gave me a hard-time for my bearish "Watch Out Below" article on Piedmont following its high profile agreement with Tesla.
- But with no revenue, no infrastructure, little cash, and facing $377 million in "initial capital costs," it was clear the company would soon be issuing lots of shares and/or debt.
- That being the case, it was no surprise when the company announced a recent 2 million share offering at $25. It won't be the last.
- The company is in the early innings of raising a large amount of cash to fund its infrastructure spend. Investors should wait on it, otherwise they'll just get diluted to death.
For further details see:
Piedmont Lithium: Don't Be Seduced By The Name