NetworkNewsBreaks – Standard Lithium Ltd. (TSX.V
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Posted On: 10/30/2019 4:30:41 PM
NetworkNewsBreaks – Standard Lithium Ltd. (TSX.V: SLL) (FRA: S5L) (OTCQX: STLHF) Obtains C$5 Million Convertible Loan Financing
Lithium-focused exploration company Standard Lithium (TSX.V: SLL) (FRA: S5L) (OTCQX: STLHF) this morning announced the company’s entrance into a C$5,000,000 loan and guarantee agreement with LANXESS Corporation (the “lender”). The loan has been fully advanced to the company as US$3,750,000, based on an agreed exchange rate, and will be utilized in the ongoing development of a demonstration plant in southern Arkansas. The plant is intended to demonstrate Standard Lithium’s proprietary process for the extraction of lithium from brine solutions. The principal amount of the loan will be convertible at a rate of one common share and one-half of a warrant to purchase an additional common share for each C$0.80 of principal converted. The warrants are exercisable at a price of C$1.20 per common share for a term of three years. Full conversion of the loan principal would result in the lender receiving 6,251,250 common shares and 3,125,625 warrants. All securities issued upon conversion of the loan are subject to a statutory hold period of four months and one day from the date the loan was advanced. The outstanding principal amount of the loan will bear interest at an annual rate of 3%, subject to adjustments. In the event that Standard Lithium has a positive consolidated operating cash flow, as shown on its financial statements, the company will pay a fee to the lender of 4.5% per annum on the average daily outstanding principal amount of the loan from the issuance date to the date that the consolidated operating cash flow is positive. Following the date on which the consolidated operating cash flow of Standard Lithium is positive, the annual interest rate will increase to 7.5%. Pre-payments are allowed with prior written approval of the lender and are subject to a prepayment fee of 3% on the portion of the loan being prepaid. The loan is due in full on the fifth anniversary, subject to the provision that at any time after second anniversary the lender may elect an earlier maturity date on 60 days’ notice. The loan is secured by a charge on the shares of Standard Lithium’s direct and indirect subsidiaries, Arkansas Lithium Corp., Vernal Minerals Corp., and 2661881 Ontario Limited, as well as by a security interest in the tangible and intangible property of Standard Lithium and the subsidiaries.
Please see full disclaimers on the NetworkNewsWire website applicable to all content provided by NNW, wherever published or re-published: http://NNW.fm/Disclaimer
Lithium-focused exploration company Standard Lithium (TSX.V: SLL) (FRA: S5L) (OTCQX: STLHF) this morning announced the company’s entrance into a C$5,000,000 loan and guarantee agreement with LANXESS Corporation (the “lender”). The loan has been fully advanced to the company as US$3,750,000, based on an agreed exchange rate, and will be utilized in the ongoing development of a demonstration plant in southern Arkansas. The plant is intended to demonstrate Standard Lithium’s proprietary process for the extraction of lithium from brine solutions. The principal amount of the loan will be convertible at a rate of one common share and one-half of a warrant to purchase an additional common share for each C$0.80 of principal converted. The warrants are exercisable at a price of C$1.20 per common share for a term of three years. Full conversion of the loan principal would result in the lender receiving 6,251,250 common shares and 3,125,625 warrants. All securities issued upon conversion of the loan are subject to a statutory hold period of four months and one day from the date the loan was advanced. The outstanding principal amount of the loan will bear interest at an annual rate of 3%, subject to adjustments. In the event that Standard Lithium has a positive consolidated operating cash flow, as shown on its financial statements, the company will pay a fee to the lender of 4.5% per annum on the average daily outstanding principal amount of the loan from the issuance date to the date that the consolidated operating cash flow is positive. Following the date on which the consolidated operating cash flow of Standard Lithium is positive, the annual interest rate will increase to 7.5%. Pre-payments are allowed with prior written approval of the lender and are subject to a prepayment fee of 3% on the portion of the loan being prepaid. The loan is due in full on the fifth anniversary, subject to the provision that at any time after second anniversary the lender may elect an earlier maturity date on 60 days’ notice. The loan is secured by a charge on the shares of Standard Lithium’s direct and indirect subsidiaries, Arkansas Lithium Corp., Vernal Minerals Corp., and 2661881 Ontario Limited, as well as by a security interest in the tangible and intangible property of Standard Lithium and the subsidiaries.
Please see full disclaimers on the NetworkNewsWire website applicable to all content provided by NNW, wherever published or re-published: http://NNW.fm/Disclaimer
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