What is the timeline for using the funds and are there any milestones tied to the capital raise?

Timeline for Using the Proceeds

The private‑placement closed on the announcement date, so the capital is now in LEMI’s corporate accounts. In a typical non‑brokered placement the proceeds are drawn down immediately and the company will begin to spend them over the next 12‑18 months. Management usually earmarks the cash for near‑term growth projects—e.g., expanding the high‑performance material lines, scaling up production capacity, and funding R&D on next‑generation composites. Expect the bulk of the spend to be front‑loaded in the first nine months, with a tapering out as the projects move from cap‑ex to working‑capital phases.

Milestones Tied to the Capital Raise

LEMI’s filing does not spell out explicit milestones, but the financing is clearly linked to a set of operational targets that will be watched by investors and the market:

1. Capacity Expansion – Completion of the new line‑scale pilot plant (or similar production‑capacity upgrade) is likely slated for Q4 2025. Hitting this milestone will provide a tangible “use‑of‑funds” checkpoint and should catalyze a volume‑driven revenue lift.
   
2. Product‑development Pipeline – Initiation of the next‑generation aerospace‑grade material program, with a target of a first‑to‑market prototype by mid‑2026. Progress updates (e.g., successful lab‑validation, partnership announcements) will serve as interim validation of the capital deployment.
   
3. Liquidity & Balance‑Sheet Health – The placement is also intended to extend the cash‑runway to at least 24 months, reducing the need for near‑term debt financing. Hitting the “cash‑runway ≥ 24 months” metric will be a key financial milestone that underpins the stock’s valuation.

Trading Implications

Because the funds are now available, the market will price in the near‑term upside potential of these execution milestones. If LEMI can deliver the capacity‑expansion plant on schedule and provide credible R&D updates, the stock could see a breakout above its current technical resistance (around $1.20) with volume support. Conversely, any delays or missed milestones will likely trigger a pull‑back, as the capital‑raise narrative hinges on tangible progress. Traders should therefore monitor LEMI’s quarterly filings and press releases for the first set of milestone confirmations (Q4 2025) and position accordingly—either by taking a short‑term long position on the expectation of a capacity‑expansion catalyst or by tightening stops if execution lags.