Canaccord Genuity slightly lowers target price on Cleantech Lithium

(Sharecast News) - Analysts Canaccord Genuity cut their target price on CleanTech Lithium from 19p to 17p on Thursday, but reiterated their 'speculative buy' rating after updating its model to reflect the company's recent equity raise and convertible loan note conversion. Canaccord Genuity said CleanTech Lithium has effectively recapitalised the business, securing around £6m in gross proceeds at 6p per share - including a stronger‑than‑expected £600,000 retail component - while converting roughly £3.5m of convertible loan notes and leaving the company debt‑free. The larger‑than‑forecast raise and attached warrants increased dilution, prompting the reduction in its valuation.

The Canadian bank said the strengthened balance sheet gives CleanTech Lithium more than 12 months of funding with no immediate equity overhang ahead of key milestones.

Canaccord Genuity also noted that CleanTech's environmental impact assessment remained the main gating item, but said the new funding will allow the firm to accelerate this work.

Canaccord values the shares at 0.7x net asset value, compared with the current market valuation of around 0.24x.







Reporting by Iain Gilbert at Sharecast.com