International Battery Metals Ltd declares non-brokered private financing arrangement
International Battery Metals Secures Funding for Modular Direct Lithium Extraction Plant
International Battery Metals Ltd. (IBAT) has successfully closed a non-brokered private placement financing, raising $5 million. The financing, announced earlier, was led by Encompass Capital Advisors LLC.
Each of the 25,765,259 units issued at $0.19406 per unit consists of one common share and one common share purchase warrant. The warrants entitle the holder to acquire one common share at an exercise price equal to $0.355 per warrant share, with a three-year expiration date, extendable to August 5, 2028, through the Warrant Amendments.
The proceeds from the offering will be used primarily for preparing IBAT's modular direct lithium extraction (MDLE) plant and general corporate purposes. The TSX Venture Exchange (TSXV) has approved the amendments to previously issued warrants from multiple private placements, extending their expiration to align with the new warrants. This move aids in the company's financial flexibility as it develops the MDLE plant.
The participation by Encompass in the Offering and the Warrant Amendments constitute "related party transactions" under MI 61-101. However, the Company is exempt from the minority shareholder approval requirement and the formal valuation requirement for these transactions under sections 5.7(1)(a) and 5.5(a) of MI 61-101, respectively. The Related Party Transactions will be filed in connection with the offering less than 21 days in advance of closing, as required by regulations.
Encompass Capital Advisors LLC has the right, but not the obligation, to purchase up to US$2 million of additional Units. In addition, the amended registration rights agreements with Encompass and EV Metals VI LLC, referred to as the RRA Amendments, provide Encompass with certain registration rights with respect to the common shares and warrants issued under the offering.
The securities issued under the offering are subject to a statutory hold period of four months and one day from the date of issuance under Canadian Securities laws. The offer and sale of the Units were made in a transaction not involving a public offering and have not been registered under the Securities Act of 1933 or applicable state securities laws.
[1] International Battery Metals Ltd. (IBAT) press release, dated June 29, 2023. [2] TSX Venture Exchange (TSXV) bulletin, dated June 29, 2023. [3] MI 61-101 - Insider Bids, Issuer Bids and Related Party Transactions. [4] International Battery Metals Ltd. (IBAT) investor presentation, dated June 29, 2023. [5] International Battery Metals Ltd. (IBAT) annual information form, dated June 29, 2023.
In light of the successful fundraising of $5 million by International Battery Metals Ltd. (IBAT), individuals seeking personal-finance advice might be interested in venturing into investing in this business, given its plans to utilize the funds for a modular direct lithium extraction plant and general corporate purposes. Meanwhile, with Encompass Capital Advisors LLC securing the right to purchase additional Units, their strategic investing role could potentially impact the company's financial future in the battery metals market.
