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Edison Lithium Provides Update on Spin-Out of Cobalt Assets
Vancouver, British Columbia--(Newsfile Corp. - March 28, 2023) - Edison Lithium Corp. (TSXV: ED...
About this update from Edison Lithium Corp.
[{"type":"text","content":"Edison Lithium Provides Update on Spin-Out of Cobalt AssetsVancouver, British Columbia--(Newsfile Corp. - March 28, 2023) - Edison Lithium Corp. (TSXV: EDDY) (OTCQB: EDDYF) (FSE: VV00) (\"Edison\" or the \"Company\") further to the Company's news release dated May 19, 2022, the Company is pleased to provide an update regarding the proposed spinout of its cobalt assets in northeastern Ontario, referred to as the Kittson Cobalt Property (the \"Spin-Out\"), into a newly incorporated subsidiary (\"SpinCo\"). The Company will continue to hold its interest in the Antofalla Salar and Pipanaco Salar lithium projects in Argentina. It is proposed that the Spin-Out will be carried out by way of statutory plan of arrangement pursuant to the Business Corporations Act (British Columbia). Common shares of SpinCo (the \"SpinCo Shares\") will now be distributed to shareholders of Edison on the basis of one SpinCo Share for every eight common shares of Edison held. There will be no change in Edison shareholders' holdings in the Company as a result of the Spin-Out. If the Spin-Out is completed, shareholders will own shares in both companies, Edison and SpinCo.The proposed Spin-Out will be subject to the terms of an arrangement agreement to be entered into between Edison and SpinCo, approval of shareholders at a meeting of Edison shareholders, approval of the British Columbia Supreme Court, and approval of the TSX Venture Exchange (the \"Exchange\").The Company intends to seek a listing of the SpinCo Shares on the Exchange, however no assurance can be provided that such a listing will be obtained. Listing will be subject to SpinCo fulfilling all of the requirements of the Exchange.The Company expects the Spin-Out will increase shareholder value by allowing capital markets to ascribe value to the Kittson Cobalt Property independent of the Company's lithium properties.Nathan Rotstein, Chief Executive Officer of Edison, comments, \"We are always looking at opportunities to unlock shareholder value and spinning out the cobalt asset makes perfect sense. Cobalt is an essential mineral that has strong demand in rechargeable batteries for electric vehicles, mobile phones, and other electronic devices. The new entity will present a compelling opportunity for further investment in the heated battery metals space.\"Upon completion of the Spin-Out, SpinCo inte...