Business
Edison Lithium Enters into Arrangement Agreement for the Spin Out of Cobalt Assets
Vancouver, British Columbia--(Newsfile Corp. - December 7, 2023) - Edison Lithium Corp. (TSXV: ...
About this update from Edison Lithium Corp.
[{"type":"text","content":"Edison Lithium Enters into Arrangement Agreement for the Spin Out of Cobalt AssetsVancouver, British Columbia--(Newsfile Corp. - December 7, 2023) - Edison Lithium Corp. (TSXV: EDDY) (OTCQB: EDDYF) (FSE: VV0) (\"Edison\" or the \"Company\") is pleased to announce that further to its news releases dated March 28, 2023, July 13, 2023, and November 28, 2023, it has entered into an arrangement agreement dated December 6, 2023 (the \"Arrangement Agreement\") with its wholly-owned subsidiary, Edison Cobalt Corp. (\"SpinCo\"), pursuant to which, among other things, a distribution of the common shares of SpinCo will take place with the result that the shareholders of the Company will (other than any dissenting shareholders) also become shareholders of SpinCo by way of a statutory plan of arrangement pursuant to the Business Corporations Act (British Columbia) (the \"Arrangement\").Arrangement Highlights:An aggregate of approximately 18,553,916 common shares of SpinCo (the \"SpinCo Shares\") will be distributed to shareholders of Edison on the basis of one SpinCo Share for every one common share of Edison held as at the distribution date (the \"Share Distribution Record Date\").There will be no change in Edison shareholders' holdings in the Company as a result of the Arrangement. If the Arrangement is completed, shareholders will own shares in both companies, Edison and SpinCo.Immediately prior to the completion of the Arrangement, the Company and SpinCo will have fulfilled or satisfied their respective closing conditions to a property purchase agreement between the Company and SpinCo, including the Company's transfer of the property claims comprising the Kittson-Cobalt Property to SpinCo and SpinCo's share issuances to the Company;The Company expects the Arrangement will increase shareholder value by allowing capital markets to ascribe value to the Kittson Cobalt Property independent of the Company's lithium properties and alkali dispositions.The Company will continue to hold its interest in the Antofalla Salar and Pipanaco Salar lithium projects in Argentina and alkali dispositions, a sodium sulphate project in the Province of Saskatchewan.SpinCo will become a reporting issuer in the provinces of British Columbia, Alberta, and Ontario upon completion of the Arrangement, and will seek to list (the \"Listing\") the SpinCo Shares on the T...