Albemarle (ALB) was the worst-performing stock in the S&P 500 Tuesday, falling nearly 18%, 💟after the world’s biggest lithium p🐈roducer announced it would be selling as much as $2.01 billion in new stock to finance capital projects or lower its debt.

The company said it had begun offering $1.75 billion of depositary shares, each representing a 1/20th interest in a share of its Series A Mandatory Convertible Preferred Stock. In addition, Albemarle expect🍸s to offer underwriters a 30-day option to buy up to another $262.5 million worth of the depositary shares. The conversion rate, dividend, and o🌱ther terms will be determined at the time of pricing. 

The firm explained that it intends to use the cash raised for general corporate purposes, which could include funding growth capital expenditures, “such as the construction and expansion of lithium operations in Australia and Canada that are significantly progressed,” or repaying debt.

Albemarle’s revenue has been significantly hurt by plunging lithium prices caused by lower demand for electric vehicles, which use lithium in their batteries. In January, the company said it was 澳洲幸运5官方开奖结果体彩网:cutting costs, including reducing 2024 澳洲幸运5官方开奖结果体彩网:capital expenditures from the y🙈ear before and laying off workers.   

Albemarle shares ended Tuesday's session down 17.9% at $109.40, their lowest level in more than three years.