Lithium Ionic Closes Final Tranche of Private Placement
TORONTO — Lithium Ionic Corp. (TSXV: LTH; OTCQB: LTHCF; FSE: H3N) has successfully completed the second and final tranche of its non-brokered private placement financing. This follows the initial tranche closure on September 29, totaling 26,090,130 units sold at $0.70 each, attracting a remarkable total of $18,263,091 in gross proceeds.
Investment Overview
The recent tranche consisted of 7,739,989 units, generating gross proceeds of $5,417,992. Each unit is composed of one common share and a warrant that permits holders to buy an additional common share at an exercise price of $0.90 for 24 months. These funds are earmarked for advancing Lithium Ionic’s Brazilian projects and other corporate requirements.
Funding Utilization
The strategic deployment of the funds has been designed to bolster the development of the company's properties in Brazil, focusing on the Itinga and Salinas projects, which are situated in a favorable mining jurisdiction known for its burgeoning hard-rock lithium district.
Insider Participation Details
A percentage of the units were acquired by certain insiders, totaling 947,929 units, classified as a related party transaction. This acquisition is noteworthy under Multilateral Instrument 61-101 but is exempt from specific formal valuation requirements, as the transaction’s value is under 25% of the company’s market capitalization.
Regulatory Compliance
The securities offered through this financing have not and will not be registered under the United States Securities Act of 1933. Therefore, offerings are restricted to outside the United States and to non-U.S. persons unless exemptions apply.
Partnership with RTEK
Lithium Ionic plans to issue a significant number of common shares (7,790,109) to RTEK International DMCC as compensation for its assistance with the company’s feasibility study. This study aims to establish a reduction in CAPEX by approximately USD $75.2 million as analyzed in the May feasibility reports.
Company Overview
Lithium Ionic is committed to exploring and developing its lithium properties in Brazil. The company’s flagship projects cover substantial land, capitalizing on the region’s potential as a prominent lithium source.
Contact Information
If you have any inquiries, please reach us at +1 647.316.2500 or via email at info@lithiumionic.com.
Frequently Asked Questions
What is the purpose of the funding Lithium Ionic received?
The funds will primarily support the development of Lithium Ionic’s lithium properties in Brazil and cover other corporate expenses.
Who participated in the insider purchase?
Certain insiders of Lithium Ionic acquired 947,929 units during the second tranche, which is classified as a related party transaction.
What are the terms of the warrants issued?
The warrants allow holders to purchase one common share at an exercise price of $0.90 per share for a period of 24 months after issuance.
How many total units were sold between both tranches?
A total of 26,090,130 units were issued across both tranches, showcasing strong investor interest in the company.
Where can I learn more about Lithium Ionic’s projects?
For more information about Lithium Ionic’s projects and developments, you can contact the company directly or visit their official communications.