American Lithium (LI.V) retains its Outperform rating and $1.50 price target, National Bank of Canada said in a Wednesday note. The bank said the target price was based on ascribing a multiple of 0.70x to its fully financed project net asset value (NAV), to which it adds its corporate adjustments at par.

American Lithium's shares had plummeted 28% at last look to $0.65 on the TSXV.

This comes after American Lithium recently announced its plan to voluntarily delist its shares from the Nasdaq and de-register with the U.S. SEC following board approval. The last trading on the Nasdaq is expected on Dec. 27.

National Bank noted that the alternative to meet the pricing requirements was for a share capital consolidation, which was opposed by many large shareholders.

"While we expect this to reduce the available liquidity for shareholders and reduce the access to a larger investor base in the U.S., in light of the current market conditions and the low share price, the company has minimal levers to pull to issue equity or make any meaningful acquisition," the bank said.