SL Industries (SLI)

[jbsliverer]

Standard Lithium's Koch investment more than just capital funding, Roth says


Standard Lithium (SLI +9.1%) powers higher as Roth Capital reiterates a Buy rating and raises its stock price target to $11 from $10.50, after the company said last week it will receive a $100M direct investment from Koch Investments Group.
Standard Lithium will issue nearly 13.5M common shares at C$9.43/share - while somewhat dilutive, Roth analyst Joe Reagor says the value of the strategic partner outweighs the dilution.
While the funding should provide Standard Lithium with the necessary capital to cover its portion of the cost of developing its first commercial direct lithium extraction plant, it also allows the company to aggressively advance its SW Arkansas project, and adds credibility to its technology amid a period of volatility in the company's share price.
Standard Lithium shares have recouped losses that followed a short report from Blue Orca that said the company was "massively overvalued."
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