Why American Lithium Stock Blasted 16% Higher Today
Monday was an ideal day to be a shareholder of American Lithium (NASDAQ: AMLI). The mining company's share price rocketed more than 16% higher on news that it closed an acquisition. By contrast, the S 500 index could only muster a 0.9% gain on the day.
Before market open, American Lithium disclosed that it had completed its investment in peer Surge Battery Metals. With its 5.36 million Canadian dollar ($4.02 million) investment, the company now holds roughly 9.7% in Surge.
It could push that number higher. In return for its investment, American Lithium received 13.4 million units of Surge. These comprise one share of common stock and a single share purchase warrant. The warrants allow for the purchase of common stock at a price of CA$0.55 ($0.41) per share and will be exercisable for a period of three years.
Source Fool.com
