Liontown Resources Ltd (LTR.AU) experienced a significant intraday decline, with its stock price plummeting 5.14% during Thursday's trading session.
The sharp drop followed the company's announcement that LG Energy Solution has elected to convert its entire US$250 million convertible note into Liontown equity. This transaction will result in LG Energy Solution holding approximately 8% of Liontown's issued share capital, representing a substantial equity dilution event for existing shareholders.
Alongside this dilution news, Liontown also reported its quarterly operational results, including concentrate production of 105,342 Dmt, sales of 112,122 Dmt, and revenue of A$130 million. The combination of significant equity dilution and quarterly performance metrics contributed to the negative market reaction during the trading session.