Standard Lithium Stock Is Falling Sharply Friday: What's Going On?

Standard Lithium Ltd (NYSE:SLI) is trading lower Friday morning after the company announced the pricing of a previously announced underwritten public offering.

• SLI is feeling the pressure from bearish momentum. See if it is worth your attention here.

What To Know: The company will issue 29,885,057 common shares at $4.35 per share, for gross proceeds of $130 million. The offering is being led by a syndicate of underwriters including Morgan Stanley and Evercore ISI. The company has also granted the underwriters an option to purchase up to an additional 4,482,758 common shares.

Standard Lithium intends to use the net proceeds to fund capital expenditures at its South West Arkansas Project and Franklin Project in East Texas, as well as for working capital and general corporate purposes. The offering is expected to close on or about October 20.

Benzinga Edge Rankings: Despite the offering-related dip, Benzinga Edge Rankings show the stock has a very strong Momentum score of 97.56.

SLI Price Action: Standard Lithium shares were down 22.91% at $4.15 at the time of publication on Friday, according to Benzinga Pro data.

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How To Buy SLI Stock

By now you're likely curious about how to participate in the market for Standard Lithium – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

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