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Avalon Enters into $15,000,000 Convertible Security Funding Agreement to Accelerate Development of Its Planned Lithium Processing Facility in Ontario
Toronto, Ontario--(Newsfile Corp. - March 18, 2024) - Avalon Advanced Materials Inc. (TSX: AV...
About this update from Avalon Advanced Materials Inc.
[{"type":"text","content":"Avalon Enters into $15,000,000 Convertible Security Funding Agreement to Accelerate Development of Its Planned Lithium Processing Facility in OntarioToronto, Ontario--(Newsfile Corp. - March 18, 2024) - Avalon Advanced Materials Inc. (TSX: AVL) (OTCQB: AVLNF) (\"Avalon\" or the \"Company\") is pleased to announce that it has entered into a $15,000,000 convertible security funding agreement (the \"Funding Agreement\") with Lind Global Fund II, LP, an entity managed by The Lind Partners, a New York based institutional fund manager (together \"Lind\").The first drawdown on the Funding Agreement will be for $2,750,000, and is expected to close within the next two weeks. Subject to further agreement by the parties, additional drawdowns under the Funding Agreement can be made on satisfaction of certain conditions.The proceeds from the first drawdown will be used to accelerate the work program for the Company's planned lithium processing facility located in Thunder Bay, Ontario, including the initiation of a preliminary economic assessment, and cover near term working capital requirements. Phillip Valliere, Managing Director at the Lind Partners said, \"We are very pleased to continue our long-term relationship with Avalon, dating back to our first investment together in 2017, by making this new investment to support Avalon's processing facility in Thunder Bay. We are optimistic of their Thunder Bay strategy and believe that Avalon has a unique opportunity to become a significant player in the lithium supply chain for EV battery manufacturers in Ontario.\" The convertible security to be issued pursuant to the first drawdown under the Funding Agreement will have a two-year term and will accrue a simple interest rate obligation of 10% per annum on the funded amount, which is prepaid and attributed to the face value of the convertible security upon issuance, resulting in a face value of $3,300,000 (the \"Face Value\"). Lind will be entitled to convert the Face Value amount over a 24 month period, subject to certain limits, at a conversion price equal to 85% of the five-day trailing volume weighted average price of Avalon's common shares prior to the date of conversion. The convertible security matures 24 months after closing. Commencing 30 days after the expiry of the 4-month statutory hold applicable to the convertible security, Ava...