Toronto, Ontario--(Newsfile Corp. - July 8, 2026) - Avalon Advanced Materials Inc. (TSX: AVL) (OTCQB: AVLNF) ("Avalon" or the "Company") announces that it has completed, effective July 8, 2026 (the "Effective Date"), a consolidation of the common shares in the capital of the Company (the "Common Shares") outstanding on the basis of one hundred eighty (180) pre-consolidation Common Shares for every one (1) post-consolidation Common Share (the "Consolidation"). The Consolidation was previously approved by the Company's shareholders at its special meeting of shareholders held on June 29, 2026 (the "Meeting"), and the one hundred eighty (180) to one (1) consolidation ratio approved by the board of directors of the Company is within the previously disclosed range of ratios authorized by the shareholders at the Meeting. The Consolidation is intended to provide the Company with a more conventional capital structure and support its ongoing evaluation of broader capital markets opportunities, including a potential future U.S. exchange listing.
Notice of the Consolidation has been provided to the Toronto Stock Exchange ("TSX"). The Common Shares will continue to be listed on the TSX under the symbol "AVL" and the OTCQB® Venture Market ("OTCQB") under the symbol "AVLNF" except that for approximately twenty (20) trading days after the implementation of the Consolidation, the Company's symbol on the OTCQB may display as AVLNFD. The Common Shares are expected to begin trading on a post-Consolidation basis on the TSX on or about July 13, 2026. Following the Consolidation, the new CUSIP number for the Common Shares is 05337L502 and the new ISIN for the Common Shares is CA05337L5027.
As a result of the Consolidation, the 835,628,796 Common Shares that were issued and outstanding prior to the Consolidation have been reduced to approximately 4,642,382 Common Shares (disregarding the treatment of any resulting fractional Common Shares). Each shareholder's percentage ownership in the Company and proportional voting power remains unchanged after the Consolidation, except for minor changes and adjustments resulting from the treatment of any resulting fractional Common Shares. The Company will not be issuing fractional post-Consolidation Common Shares. Where the Consolidation would otherwise result in a shareholder being entitled to a fractional Common Share, the number of post-Consolidation Common Shares issued to such shareholder will be rounded down to the nearest whole number of Common Shares and such shareholder will be entitled to a cash payment in lieu of the fractional interest to which the shareholder would otherwise be entitled equal to such fractional interest (which for greater certainty will be equal to the number of pre-consolidation Common Shares that would otherwise result in the fractional post-consolidation Common Share) multiplied by the closing price of the Common Shares, as reported by the TSX, on the last trading day prior to the effective date of the Consolidation. The closing price of the Common Shares on the TSX on July 7, 2026, the last trading day prior to the Consolidation, was $0.045.