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EV Nickel starts trading on TSX Venture Exchange

  TORONTO – EV Nickel Inc.’s [EVNI-TSXV] initial public offering (IPO) prospectus dated November 19, 2021, has been filed with and accepted by the…

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This article was originally published by Canadian Investor

 

TORONTO – EV Nickel Inc.’s [EVNI-TSXV] initial public offering (IPO) prospectus dated November 19, 2021, has been filed with and accepted by the TSX Venture Exchange and has begun trading on the Exchange.

The closing of the IPO, scheduled for December 2, 2021, was expected to have gross proceeds of $5,440,292 for a total of 1,442,200 flow-through (FT) common shares at 86 cents per FT common share and of 5.6 million units at 75 cents per unit. The company has 30,355,667 common shares issued and outstanding

EV Nickel, classified as a Tier 2 issuer, is a Canadian nickel exploration company, focused on the Shaw Dome area, south of Timmins, Ontario. The Shaw Dome area is home to its Langmuir project, which includes W4, the basis of a 2010 historical estimate of 677,000 tonnes at 1% nickel for approximately 15 million pounds of Class 1 nickel.

EV Nickel’s objective is to grow and advance a nickel business, targeting the growing demand for Class 1 nickel from the electric vehicle battery sector. EV Nickel has almost 9,100 hectares to explore across the Shaw Dome area and has identified 30 km of additional strike length.

“We are excited to get out into the public markets and begin telling the world about our wonderful assets, on the Shaw Dome, just south of Timmins,” said Sean Samson, president and CEO. “The world needs more nickel and especially the type of high-grade, clean nickel that we plan to build our business around. Decarbonization is the challenge of a lifetime and we plan to source the material that will help the EV [electric vehicle] companies grow and help address that challenge.”



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Energy & Critical Metals

Tesla Stock Will Gain Thanks to These 3 Exposure-Boosting Catalysts

Nearly a month into 2022, the future of Tesla (NASDAQ:TSLA) is receiving considerable speculation. There’s plenty of reason for this. Yesterday, Tesla…

Nearly a month into 2022, the future of Tesla (NASDAQ:TSLA) is receiving considerable speculation. There’s plenty of reason for this. Yesterday, Tesla stock rose in the face of analyst report predicting an industry tipping point. Today, it’s back to falling as good news looms on the horizon. And while the company appears to be making strides in both self-driving technology and ramping up production, little is known for sure. Today brought reports of a positive development, though. It calls to mind some new catalysts that are worth noting when evaluating Tesla.

A person walks past the storefront of a Tesla store with several vehicles visible behind a glass doorSource: Ivan Marc / Shutterstock.com

What’s Happening With Tesla Stock

Tesla stock is ready to end this week in the red. After rising yesterday, shares are down 4% on Friday. The stock fell hard this morning and tried unsuccessfully to rally. Even with yesterday’s gains, it is down more than 9% for the past five trading days.

However, a report from Electrek this morning indicates that Tesla may have better days ahead.

According to the article, California-based startup Autonomy is offering consumers a new, easy way to acquire a Tesla. The company’s website bills this endeavor as the “The cheapest, fastest, easiest way to get a Tesla Model 3.” This is good news for the electric vehicle (EV) innovator for multiple reasons. Let’s take a closer look at its broader implications.

Why It Matters

The way it looks from here, there are multiple catalysts at play that can help drive Tesla stock up.

Autonomy extends to customers a subscription-based service that will allow them to take home a Tesla Model 3. Its plans begin at $550 per month, although they require a $5,500 initial fee. The company has already purchased 100 Model 3s and it plans to expand its fleet to 10,000 by the year’s end. This will likely depend on the success of the new venture, but if it goes well, the company may purchase even more Tesla EVs.

Fleet deals have already proven a boon to Tesla stock. In late October 2021, rental car company Hertz (NASDAQ:HTZZ) ordered its own fleet of 10,000 Tesla vehicles. As InvestorPlace contributor Chris MacDonald noted, “For Tesla, this massive $4.2 billion order is significant. A company that has focused primarily on a direct-to-consumer model now has a wholesale order.”

Indeed, the deal did send Tesla stock rising. MacDonald correctly speculated that investors were liking what the deal implied for the company. Autonomy isn’t as large or well-established as Hertz, but this type of exposure could certainly be beneficial.

As the Financial Times reported, deals like the one struck by Tesla with Hertz often inspire other companies to follow suit. The trend of rental car companies building EV fleets will only serve to benefit companies like Tesla. Companies whose business involves putting drivers in cars certainly want their holdings to include Tesla vehicles. That’s good news for the company and the stock.

Hertz wasn’t the only reason Tesla stock enjoyed such strong growth in October. At the same time, Uber (NYSE:UBER) announced it was planning on making its U.S. fleet completely electric. This meant acquiring  50,000 Tesla vehicles. Partnering with the rental car company, Uber introduced a policy of paying its drivers to use rented Tesla vehicles from Hertz. It’s easy to see how this would be a booster for both stocks. Other ride-hailing apps such as Earth Rides, that feature only EVs, have also purchased Tesla fleets.

What It Means

Tesla stock has seen plenty of turbulence this month, and it may not be over. That doesn’t mean, though, that these positive market trends won’t help it rise in the months ahead.

Growing interest from rental and leasing companies is a trend that can absolutely help the company. The trend is something of a double-edged sword in the sense that it serves to boost sales for fleet building while also exposing more drivers to Tesla vehicles.

On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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Author: Samuel O'Brient

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Energy & Critical Metals

Gratomic extends closing of $27M financing

TORONTO – Gratomic Inc. (TSX-V:GRAT) (OTCQX:CBULF) (Frankfurt:CB82) announced that, further to its Press Release of December 15, 2021, the previously…

TORONTO – Gratomic Inc. (TSX-V:GRAT) (OTCQX:CBULF) (Frankfurt:CB82) announced that, further to its Press Release of December 15, 2021, the previously announced non-brokered private placement offering of $27,020,000 is fully-subscribed. The offering consists of 19,300,000 working capital units  priced at $1.40 per WC Unit for gross proceeds of $27,020,000. The final closing of the Offering will be extended until February 8, 2022.

Each WC Unit consists of one common share and one quarter (0.25) of a common share purchase warrant. Each full warrant entitles the holder to purchase one common share at a price of $1.45 per WC Warrant Share until the date which is six months following the Closing of the Offering. The closing of the offering will be extended until February 8, 2022. It is anticipated that a first closing will be effected on January 26, 2022 with a final closing scheduled for February 8, 2022.

Eligible Finders may receive 5% of the value of proceeds of the sale of WC Units in cash. The Company has agreed to pay First Republic Capital Corporation a corporate finance fee equal to 2% of the gross proceeds of the Offering as consideration for waiving its right of first refusal in respect of the Offering. First Republic will have the right to place up to $5,000,000 of the Offering with its clients and will receive an additional cash fee of 3% in respect of any WC Units placed by First Republic.

Proceeds from the Offering will be used for operating capital for the Company’s Aukam Project ($17 million), exploration for the Company’s Capim Grosso Property ($6 million) and general working capital ($4 million). The Offering is subject to TSX Venture Exchange approval. The securities issued will be subject to a four-month and one day hold period.

Arno Brand CEO & President commented, “It is a testament to the Company to receive this level of support from the market, clearly our goal to create value for our shareholders is well received. We will maintain our commitment to transparency and thank all of Gratomic’s stakeholders for their continued support.”

Insiders of the Company may subscribe for up to 10% of the WC Units under the Offering. The insider private placements are exempt from the valuation and minority shareholder approval requirements of Multilateral Instrument 61-101  by virtue of the exemptions contained in sections 5.5(a) and 5.7(1) (a) of MI 61-101 in that the fair market value of the consideration for the securities of the Company which will be issued to the insiders does not exceed 25% of its market capitalization.

Gratomic is a multinational company with projects in Namibia, Brazil, and Canada. The Company is focused on becoming a leading global graphite supplier and aims to secure a strong position in the EV battery supply chain. With the continued development of its flagship Aukam project and further exploration on the Company’s Capim Grosso property, Gratomic sets itself apart by seeking out unique top-quality assets around the world. True to its roots, the Company will continue to explore graphite opportunities displaying potential for development.

Large quantities of high-quality vein graphite have been shipped for testing to confirm its viability as an anode material. Gratomic is confident that the test results will provide a unique competitive advantage in its desired target markets. The Company will continue to update the public on the status of these tests and will provide results as soon as they become available.

The Company has formed a collaboration agreement with Forge Nano. With its patented ALD coating, this cooperation with Forge Nano is a key element to support Gratomic’s strategies towards the value-added phases of production of graphite for anode applications, namely micronization, spheronization and coating, making Gratomic graphite a preferred choice for use in lithium-ion batteries.

 





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Rivian Stock Alert: RIVN Shares Just Lost Out on Market Cap to LCID Stock

Step aside, Rivian (NASDAQ:RIVN)! There’s a new electric vehicle (EV) startup leader based on market capitalization, and its name is Lucid (NASDAQ:LCID)….

Step aside, Rivian (NASDAQ:RIVN)! There’s a new electric vehicle (EV) startup leader based on market capitalization, and its name is Lucid (NASDAQ:LCID). Recently, Lucid’s market cap of $62 billion surpassed Rivian’s market cap of $58 billion. After Rivian ballooned to as high as $179 following its initial public offering (IPO), shares have slumped lower to the mid-$60 range. Furthermore, shares of RIVN stock are down more than 35% year-to-date (YTD). While LCID stock is down roughly 7% YTD, Lucid’s superior YTD performance has allowed Lucid to surpass Rivian in terms of market cap.

Rivian sign outside the company's HQ in Silicon ValleySource: Michael Vi / Shutterstock

Both Rivian and Lucid offer investors an opportunity to invest in an early stage EV startup. However, the valuation of these two names is what is holding some investors back. Furthermore, competition from legacy automakers like Ford (NYSE:F) and General Motors (NYSE:GM) is also heating up. On top of that, investors should be aware of the elephant in the room, namely Tesla (NASDAQ:TSLA).

Last quarter, Rivian reported revenue of $1 million on top of a $1.23 billion loss. On the other hand, Lucid reported revenue of $232,000 with a $524.4 million loss. While these two EV makers remain unprofitable, investors should be reminded that it took Tesla 18 years to become profitable. Tesla achieved this accomplishment in 2020 and delivered 500,000 vehicles that year.

What’s Next As Lucid Overtakes Rivian Stock

An investor should also factor potential growth into their investment thesis. Rivian currently has 71,000 reservations for the R1T and R1S models. Meanwhile, Lucid has 17,000 reservations for its Air sedan, representing a book value of $1.3 billion. Lucid has also confirmed its goal of producing 20,000 vehicles in 2022. Furthermore, CEO Peter Rawlinson is “confident in our ability” to achieve the goal.

Rivian has not yet released a 2022 production goal, although the EV maker stated that it expects its 2021 target of 1,200 vehicles produced to fall “a few hundred vehicles short.” Rivian is also working on a new $5 billion EV plant in Georgia. Construction for the plant will start this year, with a finalization date set for 2024. The new plant is expected to be able to produce 400,000 vehicles per year. However, building new plants isn’t cheap, and Rivian is expected to report $8 billion of capital expenditures through 2023.

Both companies are currently spending billions of dollars to power future growth. Investors will want to keep up to date with reservation reports and company updates as these two EV producers try to make a name for themselves.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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