Announcement • May 07
Zhejiang Huayou Cobalt Co., Ltd (SHSE:603799) entered into a binding Scheme Implementation Deed to acquire Atlantic Lithium Limited (AIM:ALL) from Assore International Holdings Limited for approximately $200 million. Zhejiang Huayou Cobalt Co., Ltd (SHSE:603799) entered into a binding Scheme Implementation Deed to acquire Atlantic Lithium Limited (AIM:ALL) from Assore International Holdings Limited for approximately $200 million on May 7, 2026. A cash consideration of $207.45 million valued at $0.25486 per share will be paid by Zhejiang Huayou Cobalt Co., Ltd. As part of consideration, $204.27 million is paid towards common equity, $0.67 million is paid towards LSI Warrants, and $3.18 million is paid towards Performance Rights of Atlantic Lithium Limited.
The transaction is subject to subject to antitrust regulations, subject to court approval, approval by regulatory board / committee, approval of merger agreement by target board and approval of offer by target shareholders. The deal has been unanimously approved by the board of Atlantic Lithium Limited
Canaccord Genuity Group Inc. acted as financial advisor for Atlantic Lithium Limited. Herbert Smith Freehills acted as legal advisor for Zhejiang Huayou Cobalt Co., Ltd. HopgoodGanim acted as legal advisor for Atlantic Lithium Limited. Announcement • Apr 01
Atlantic Lithium Limited has completed a Follow-on Equity Offering in the amount of AUD 14.614511 million. Atlantic Lithium Limited has completed a Follow-on Equity Offering in the amount of AUD 14.614511 million.
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 25,380,709
Price\Range: AUD 0.277
Security Features: Attached Warrants
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 27,379,260
Price\Range: AUD 0.277
Transaction Features: Subsequent Direct Listing New Risk • Mar 18
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 16% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (16% average weekly change). Earnings are forecast to decline by an average of 42% per year for the foreseeable future. Revenue is less than US$1m (AU$289k revenue, or US$205k). Minor Risks Currently unprofitable and not forecast to become profitable over next 2 years (AU$19m net loss in 2 years). Shareholders have been diluted in the past year (16% increase in shares outstanding). 
