The Lake Resources N.L. (ASX: LKE) share price powered ahead by 30% last week. At market close on Friday, 4 March, the clean lithium developer’s shares were swapping hands for as little as 97 cents apiece.
However, investors have been bidding up the company’s shares since following a couple of positive announcements.
During midday trade on Friday, Lake Resources shares touched a record high of $1.335 before pulling back to close at $1.29, up 7.5%. That’s a gain of 33% over the week.
Let’s take a look at what’s been driving the excitement around this company.
What’s been happening with Lake Resources?
The Lake Resources share price was on the move last week as investors appeared upbeat about the company’s prospects.
Last Monday, Lake Resources advised it had utilised a market subscription agreement with Acuity Capital to raise $39 million.
In return, Lake Resources issued 40 million fully paid ordinary shares to Acuity Capital at a cost of 97.5 cents each.
While further strengthening the balance sheet, the funds will support development across the company’s four brine projects in Argentina.
In addition, the S&P Dow Jones Indices announced some changes in its quarterly rebalance of the S&P/ASX Indices.
As such, Lake Resources will be added to the S&P/ASX 300 Index on 22 March.
It’s possible the updated list has led investors to take advantage of the upcoming change.
Most fund managers are required to adhere to their strict guidelines, which allows them to buy shares only within a certain index. On the other hand, exchange-traded funds (ETFs) usually pick up and/or dump the appropriate shares to keep in line with the benchmark.
The Lake Resources share price has zoomed upwards of almost 300% over the past year. This is likely in part due to renewed investor sentiment within the battery industry.
Based on today’s price, Lake Resources commands a market capitalisation of roughly $1.46 billion, with approximately 1.22 billion shares outstanding.
Source: Read More