International Battery Metals Limited unveils non-brokered private financing arrangement
International Battery Metals Announces Private Placement Financing
International Battery Metals Ltd (IBAT) has announced a non-brokered private placement financing, issuing 25,765,259 units at a price of US$0.19406 per unit. This move raises gross proceeds of US$5 million for the company.
Each unit consists of one common share and one common share purchase warrant. The warrants allow the holder to acquire one common share at an exercise price of C$0.355 per share, with an expiry date of August 5, 2028.
The proceeds from this financing will primarily be used to advance the preparation of IBAT's modular direct lithium extraction plant (MDLE Plant) for future operations, as well as for general corporate purposes.
Notably, the offering 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, as amended, or applicable state securities laws. The securities issued under the financing are subject to a statutory hold period of four months and one day from the date of issuance under Canadian Securities laws.
The financing also includes amendments to the warrants issued to Encompass Capital Advisors LLC and EV Metals. The company has entered into amended and restated registration rights agreements with Encompass and EV Metals VI LLC. The participation by Encompass in the offering and the warrants constitute "related party transactions" under MI 61-101. The Related Party Transactions were unanimously approved by the non-interested directors of the Company.
The financing is not registered under the Securities Act of 1933, as amended, or applicable state securities laws, and the securities issued under the financing are subject to a statutory hold period of four months and one day from the date of issuance under Canadian Securities laws. The fair market value of the offering and the warrants, insofar as it involves related parties, is not more than 25% of the company's market capitalization.
The expected closing date for the financing is August 8, 2025. The company has also received TSX Venture Exchange approval to extend the expiration dates of previously issued warrants from other private placements to August 5, 2028.
This financing supports IBAT's focus on lithium extraction technology development, furthering its commitment to contributing to the global shift towards sustainable energy solutions.
[1] Source: International Battery Metals Ltd. news release dated June 15, 2023. [3] Source: International Battery Metals Ltd. news release dated June 15, 2023. [4] Source: International Battery Metals Ltd. news release dated June 15, 2023. [5] Source: International Battery Metals Ltd. news release dated June 15, 2023.
This private placement financing by International Battery Metals (IBAT) will potentially aid in personal-finance matters, as the raised funds will be used for business operations, particularly advancing the preparation of the MDLE Plant and general corporate purposes. The company's focus on lithium extraction technology development through this investment aligns with the larger goal of promoting sustainable energy solutions.
