Business
Avalon Announces Non-Brokered Private Placement for Gross Proceeds of up to C$9.3 Million
Toronto, Ontario--(Newsfile Corp. - December 7, 2023) - Consistent with its strategic objective t...
About this update from Avalon Advanced Materials Inc.
[{"type":"text","content":"Avalon Announces Non-Brokered Private Placement for Gross Proceeds of up to C$9.3 MillionToronto, Ontario--(Newsfile Corp. - December 7, 2023) - Consistent with its strategic objective to build Ontario's first vertically integrated lithium supply chain serving the North American EV battery market, Avalon Advanced Materials Inc. (TSX: AVL) (OTCQB: AVLNF) (\"Avalon\" or the \"Company\") is pleased to announce a non-brokered private placement of up to a maximum of 93,000,000 units of the Company (each, a \"Unit\") at a price of C$0.10 per Unit for aggregate gross proceeds of up C$9.3 million (the \"Offering\"). It is expected that insiders of the Company will subscribe for up to C$250,000 of Units pursuant to the Offering.Each Unit comprises of one common share in the capital of the Corporation (a \"Share\") and one-half (½) of one Share purchase warrant (each whole warrant, a \"Warrant\"). Each Warrant will entitle the holder to acquire one Share (a \"Warrant Share\") at a price of C$0.15 per Warrant Share for a period of 36 months following the closing date of the Offering, provided, however, that if at any time following the closing date, the closing price of the common shares of Avalon (\"Common Shares\") on the Toronto Stock Exchange (\"TSX\"), or the principal stock exchange on which the Common Shares may then trade, equals or exceeds C$0.30 for a period of 20 consecutive trading days, the Company may, by notice to the holder (supplemented by a news release of general dissemination) accelerate the expiry date of the Warrants to a date not less than 30 days from the date of delivery of such notice (the \"Accelerated Expiry Date\"), and any Warrant that remains unexercised by the holder thereof shall expire on the Accelerated Expiry Date without further notice to the holder.The net proceeds of the Offering are expected be used to fund: (i) site preparation and the preparation of a feasibility study for the Corporation's Thunder Bay Lithium Hydroxide Processing Facility; (ii) the preparation of an updated feasibility study for the Nechalacho Rare Earths & Zirconium project; (iii) repayment of the convertible debenture, including accrued interest thereon, to SCR Sibelco NV; and (iv) for working capital and general corporate purposes. Closing of the Offering will occur in in one or multiple tranches, with the first tranch...