L&F Reviewing Multiple Funding Options on 46mm and LFP Growth Momentum
TECHWORLD ·
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L&F said it is reviewing the issuance of convertible bonds (CB).
As the background for the review, the company cited external growth centered on ultra-high-nickel and 46mm products and the full-scale expansion of its LFP cathode materials business.
L&F Plus is preparing purchases of key minerals and a funding plan in preparation for LFP cathode material production volumes for North American ESS starting at the end of the third quarter, while also considering parent-company funding support.
L&F said it is reviewing the issuance of convertible bonds (CB). The review is part of a preemptive financial strategy. The company cited external growth driven by ultra-high-nickel and 46mm products, along with the full-scale expansion of its LFP cathode materials business, as the background for the review.
L&F said sales of its ultra-high-nickel and 46mm products are outperforming the plan set at the beginning of the year. It also said it is preparing for an increase in order volume, including from new customers in North America. The company said the goal is to secure key raw materials stably and strengthen its production base.
The company said the review is an extension of its dual-track strategy for NCM and LFP. It said the direction of its NCM strategy is to maintain technological dominance, while the direction of its LFP strategy is to preempt the market.
The company is broadly reviewing funding options, including the possibility of capital-like financing such as perpetual CBs. However, it said specific details have not yet been finalized.
L&F Plus, the LFP production subsidiary, is preparing to purchase key minerals such as precursors and lithium to meet production volumes for LFP cathode materials for North American ESS starting at the end of the third quarter. It is also preparing a funding plan that takes into account possible capacity expansions to meet additional LFP demand. To that end, L&F Plus is first preparing its own funding plan.
It is also considering parent-company support in case additional funding is needed. L&F CFO Ryu Seung-heon said that working capital needs inevitably increase during a phase of external growth marked by a sharp rise in production and sales. He added that the company is considering initial parent-company funding support to ensure the stable launch of the newly established L&F Plus and plans to push ahead with its dual-track strategy without disruption based on that support.
Source: TECHWORLD · Lee Gwang-jae
Original: https://www.epnc.co.kr/news/articleView.html?idxno=406705
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Source: TECHWORLD
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