- Oops!Something went wrong.Please try again later.
LOS ANGELES, November 23, 2021--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz continues its investigation of Standard Lithium Ltd. ("Standard Lithium" or the "Company") (NYSE: SLI) on behalf of investors concerning the Company’s possible violations of federal securities laws.
If you are a shareholder who suffered a loss, click here to participate.
On November 18, 2021, before the market opened, Blue Orca Capital issued a research report alleging that Standard Lithium’s claims of 90% extraction rates of battery grade lithium at its Arkansas demonstration plant has no evidence to back it up. The report claimed that "undisclosed to investors, production data submitted by Standard Lithium to the Arkansas Oil & Gas Commission appears to show that the Demonstration Plant, which has been operating for 18 months, is barely achieving a fraction of this projected recovery rate," and that the demonstration plant has only been achieving an average lithium recovery rate of 13%.
On this news, Standard Lithium stock fell $1.86, or 18.8%, to close at $8.01 per share on November 18, 2021, thereby injuring investors.
Then, on November 18, after the market closed, Standard Lithium issued a response purporting to dispute the Blue Orca report. Among other things, the Company stated that "the only data reported to the AOGC, in compliance with the requirements of the AOGC, were those volumes of lithium chloride solution that were temporarily stored on Standard Lithium’s site and these have no correlation with actual lithium recovery rates observed in the plant."
Then, on November 22, 2021, Blue Orca responded in a series of tweets, calling the Company’s response "nonsense." It further stated that "[t]he AOGC permit, which any investor can review, plainly requires the reporting of output of lithium chloride and carbonate in a separate category 2(c) from the volumes stored onsite 2(e). The data we used 2(c) is plainly labelled as the output data." Moreover, regarding Standard Lithium’s claim that the AOGC data does not include lithium chloride that has been produced and subsequently reinjected, Blue Orca stated that the "output volumes reported under 2(c) are clearly shown as being ‘sent for reinjection.’" Blue Orca reiterated that the Company "claims to have reached ‘proof of concept,’" but the potential joint venture partner "denies it has reached this milestone."
On this news, the Company’s share price fell $0.85, or 9%, to close at $8.43 per share on November 22, 2021, thereby injuring investors further.
Follow us for updates on Twitter: twitter.com/FRC_LAW.
If you purchased Standard Lithium securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to firstname.lastname@example.org, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
View source version on businesswire.com: https://www.businesswire.com/news/home/20211123005674/en/