Business
Avalon Completes $0.75 million Preferred Share Financing and $140,000 First Tranche of Private Placement
Toronto, Ontario--(Newsfile Corp. - June 29, 2018) - Avalon Advanced Materials ...
About this update from Avalon Advanced Materials Inc.
[{"type":"text","content":"Avalon Completes $0.75 million Preferred Share Financing and $140,000 First Tranche of Private PlacementToronto, Ontario--(Newsfile Corp. - June 29, 2018) - Avalon Advanced Materials Inc. (TSX: AVL) (OTCQX: AVLNF) (\"Avalon\" or the \"Company\") is pleased to announce that it has completed a non-brokered private placement financing consisting of 150 Series C1 Preferred Shares (the \"Preferred Shares\") on a private placement basis at a price of $5,000 per Preferred Share for gross proceeds of $750,000 with an entity managed by The Lind Partners (\"Lind\"), a New York based asset management firm (the \"Agreement\"). The Preferred Shares do not carry a dividend and have a redemption value per share that starts at $5,000 and increases by $250 per share each quarter over the next 24 months, to a cap of $6,750 per share. After the four month Hold Period (defined below), the Preferred Shares can be converted by Lind into common shares of the Company at a price per common share equal to 85% of the five-day volume weighted average price of the common shares on the Toronto Stock Exchange (the \"TSX\") immediately prior to the date that notice of conversion is given.In conjunction with the closing, Lind will receive a commitment fee of $37,500 and 3,750,000 common share purchase warrants. Each warrant entitles the holder to purchase one common share of the Company at a price of $0.125 per common share until 60 months after today.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. After the Hold Period, Lind has the basic right to convert 10 Preferred Shares into common shares of the Company on a monthly basis, subject to certain conversion limits set out in the Agreement; however, Lind is permitted to convert up to 30 Preferred Shares on a monthly basis in the event such amount does not exceed 20% of the Company's 20-day traded volume of common shares on the TSX immediately prior to the date of delivery of a conversion notice.Lind will also be entitled to accelerate its conversion right to the full amount of the redemption value applicable at such time, or demand repayment of the applicable redemption value per share in cash, upon the occurrence of certain events as set out in the Agreement. T...