[hot stocks] limit! Is the debt crisis of Tianqi lithium industry taking a turn for the better?

SMM12 March 9 News: since December 3, the lithium industry giant Tianqi lithium industry share price has risen continuously, rising limit today!

Yesterday, the 11th meeting of the Fifth Board of Directors of Tianqi Lithium Industry and the 10th meeting of the Fifth Board of Supervisors unanimously approved the motion on increasing capital and shares of the company's wholly-owned subsidiaries and introducing strategic investors.

According to the "Investment Agreement" to be signed and related agreements: the company's wholly-owned subsidiary Tianqi Lithium Energy Australia Pty Ltd (, the former wholly-owned subsidiary Tianqi UK Limited,2020, changed its name on December 6, 2000, hereinafter referred to as "TLEA"). After the completion of the capital increase of the Australian listed company IGO Limited;, a strategic investor, 51% of the registered capital of TLEA is held by IGO Lithium Holdings Pty Ltd, a wholly-owned subsidiary of IGO Lithium Holdings Pty Ltd, which holds 49% of the registered capital of TLEA.

Earlier, Tianqi Lithium announced that $1.884 billion of its M & A loans would mature at the end of November 2020, accounting for 179.35 per cent of the company's most recent audited net assets.

In the first three quarters of 2020, Tianqi lithium industry performed poorly, with operating income of 2.427 billion yuan, down 36% from the same period last year, and net profit belonging to shareholders of listed companies was-1.103 billion yuan, down 890.95% from the same period last year. Tianqi Lithium Industry expects that the company's operating performance may continue to lose money in 2020, and it is possible to be warned of the risk of delisting by the Shenzhen Stock Exchange.

Recently, Tianqi Lithium Industry said that after being examined and approved by the company's board of directors, the company and its wholly-owned subsidiaries intend to sign a "revised and restated loan agreement" with the syndicate. Its core terms include and are not limited to: the repayment period of the original category A loan and category C loan totaling 1.884 billion US dollars under the M & A loan will be extended to November 26, 2021, and the company's wholly-owned subsidiary TLEA will complete capital increase and stock increase to introduce strategic investors. And through the transaction to repay the principal of the above syndicated loan is not less than 1.2 billion US dollars, the period can be automatically extended to November 25, 2022; It is proposed to extend the maturity of the original category B loan of US $1.2 billion under the M & A loan to November 29, 2023, and with the consent of the syndicate, the maturity date can be extended to November 29, 2024 with the consent of the syndicate.