Business
Avalon Arranges $876,000 in Interim Financing
Toronto, Ontario--(Newsfile Corp. - November 26, 2018) - Avalon Advanced Materials Inc. ...
About this update from Avalon Advanced Materials Inc.
[{"type":"text","content":"Avalon Arranges $876,000 in Interim FinancingToronto, Ontario--(Newsfile Corp. - November 26, 2018) - Avalon Advanced Materials Inc. (TSX: AVL) (OTCQB: AVLNF) (\"Avalon\" or the \"Company\") is pleased to announce that it has closed a private placement of units for gross proceeds of $376,250 and entered into a $500,000 convertible security funding agreement (\"Funding Agreement\") with an entity managed by The Lind Partners (\"Lind\"), a New York based asset management firm. The Company continues to make steady progress with its development plans on the East Kemptville Tin Project and Separation Rapids Lithium Project. Recent work has mainly involved completing necessary product off-take agreements, project permitting, environmental assessment and community engagement. The non-brokered private placement consisted of 5,375,000 units issued at a price of $0.07 per unit for gross proceeds of $376,250. Donald S. Bubar, President and CEO of the Company, subscribed for 1,000,000 of these units. Each unit was comprised of one common share and one half of one common share purchase warrant. Each whole warrant entitles the holder to acquire one common share at a price of $0.12 for a period of 24 months from issuance, or, if at any time following issuance, the closing price of the common shares on the TSX is $0.16 or higher for a period of twenty consecutive trading days, the Company may, by notice to the holder (supplemented by a news release of general dissemination) reduce the expiry date of the warrants to not less than 30 days from the date of such notice. Pursuant to Canadian securities laws, the securities issuable under this private placement will be subject to a hold period (the \"Hold Period\"), which expires four months and one day after closing. The proceeds from this private placement will be used for general working capital purposes. The convertible security under the Funding Agreement has a two year term and will accrue a simple interest rate obligation of 10% on the amount funded that is prepaid and attributed to its face value upon issuance. Lind will be entitled to convert the convertible security commencing 180 days after execution of the Funding Agreement at a conversion price equal to the higher of (a) 80% of the five day trailing VWAP of the common shares prior to the date of conversion, and (b) the five day trailing ...