Shares of Nemaska Lithium (TSX: NMX, US-OTC: NMKEF) fell 23% on Tuesday after the company announced it was laying off 64 employees, or about half of its staff, following financing delays for its Whabouchi project in Quebec.
“This difficult decision comes after a rigorous review of the current situation and is aimed at both the optimization of current cash flow and the continuation of the project,” the company said in an Oct. 15 release.
Nemaska Lithium – which is hoping to become one of the largest suppliers of lithium hydroxide, a key component in the fast growing lithium-ion battery and energy storage market – also stated that it’s “still confident in its ability to successfully complete the project. However, the corporation cannot currently specify the precise date for closing the required financing.”
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