Lithium Ionic Corp. Completes Oversubscribed Private Placement
Lithium Ionic Corp. announces the successful conclusion of its final tranche of a non-brokered private placement, designed to bolster its strategic initiatives and corporate growth. This move marks a significant milestone in the company’s financing efforts, facilitating the advancement of its projects and operations.
Details of the Private Placement
On a recent date, Lithium Ionic Corp. reported the completion of the second and final tranche of its oversubscribed private placement financing. Together with the first tranche, which was concluded shortly before, the company successfully issued a total of 26,090,130 units at a price of $0.70 per unit. This financing resulted in gross proceeds amounting to $18,263,091.
Breakdown of the Offering
The second tranche, specifically, consisted of 7,739,989 units, yielding gross proceeds of $5,417,992. Each unit encompasses one common share along with a warrant, allowing the holder to purchase an additional common share at an exercise price of $0.90 for a two-year period from this date.
Utilization of Proceeds
Lithium Ionic is committed to deploying the net proceeds from this offering towards the development of its lithium properties in Brazil and for general corporate purposes. The funds will support various aspects of the company's operational strategy.
Regulatory Considerations
In accordance with the applicable securities laws, the securities issued through this offering will undergo a four-month hold period. The overall process remains subject to essential approvals, including consent from the TSX Venture Exchange (TSXV).
Insider Participation and Related Party Transactions
Notably, certain company insiders participated in this tranche by acquiring 947,929 units. This aspect is categorized as a related party transaction under relevant regulations, but it is exempt from formal valuation requirements as the units acquired do not exceed 25% of the company’s market capitalization.
Future Collaborations and Achievements
Further enhancing its operational capacity, Lithium Ionic is set to issue 7,790,109 common shares to RTEK International DMCC as compensation for their role in successfully completing the company’s feasibility study, posited as a crucial step towards optimizing project economics and operational efficiency.
About Lithium Ionic Corp.
Lithium Ionic Corp. is a Canadian mining firm actively engaged in the exploration and development of its lithium properties in Brazil. The company’s flagship projects, Itinga and Salinas, span 14,668 hectares in the recognized northeastern region of Minas Gerais, a key area for hard-rock lithium extraction.
Strategic Positioning in the Lithium Market
This region not only houses their promising projects but is also in proximity to established lithium mines, which have operated for over three decades. Lithium Ionic's strategic objectives leverage the growing demand for lithium, facilitating advancements in battery technology and electric vehicle production.
Engagement with Investors and Media
The company encourages inquiries from investors and media representatives interested in learning more about its operations or potential collaborations. They can reach out through the contact details provided at the end of this release.
Frequently Asked Questions
What was the purpose of Lithium Ionic Corp.'s private placement?
The private placement aims to enhance corporate development and support the exploration of their lithium properties in Brazil.
How many units were issued in this financing?
A total of 26,090,130 units were issued across two tranches, generating gross proceeds of $18,263,091.
What insider participation was noted in this placement?
Insiders acquired 947,929 units in the second tranche, categorized as a related party transaction.
What will the proceeds be used for?
The proceeds will primarily fund the development of lithium properties and serve general corporate purposes.
Who can be contacted for more information?
Inquiries can be directed to +1 647.316.2500 or via email at info@lithiumionic.com.
