Shares of Greenland Mines Ltd dropped 26.2% in after-hours trading on Tuesday after the company announced a proposed public offering of ordinary shares.
The stock closed at $9.71 in regular trading, up 13.57% or $1.16, before falling to $7.51, a decline of 22.66% or $2.20, in after-hours activity at 14:59:43 UTC. The miner, listed on NASDAQ under the ticker GRML, said it plans to sell the securities directly in the offering.
Proceeds from the offering, along with existing cash reserves, will be used to acquire the Sarfartoq Nd-Pr Rare Earth Elements Project in southwest Greenland, fund working capital needs, and cover general corporate purposes. The company did not specify the size of the offering, citing market conditions and other factors that may affect completion, timing, or terms.
Greenland Mines operates three primary projects: the Skaergaard Project in southeast Greenland, focused on exploration and development under its mining division; the Sarfartoq project, targeting rare earth elements; and the Klotho (KLTO-202) program in its biotechnology division, which targets ALS treatment. The offering announcement follows the company’s recent operational updates but does not include additional financial guidance or project milestones.
