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Lightbridge Secures $4.0 Million Convertible Preferred Stock Investment at $1.50 per Share, Subject to Closing Conditions
11:17 am ET January 18, 2018 (Globe Newswire) Print
Lightbridge Corporation (NASDAQ:LTBR), a nuclear fuel technology development company, today announced that it secured an investment for gross proceeds of approximately $4.0 million from a combination of European family offices, strategic and accredited American and European investors, subject to certain closing conditions. Under the Securities Purchase Agreement (the "Agreement"), the Company will issue 2,666,667 shares of newly created Non-Voting Series B Convertible Preferred Stock ("Preferred Stock") and associated warrants for $4 million, or $1.50 per share of Preferred Stock and associated warrants. The Preferred Stock is convertible into common stock initially on a one-for-one basis, subject to adjustment in the event of certain stock dividends or distributions or stock splits, and will accrue a 7% annual dividend, payable in-kind. The warrants to purchase 666,664 shares of the Company's common stock will have an exercise price of $1.875 per share of the underlying common stock and expire six-months following issuance. The Company may, at its option, redeem any unconverted Preferred Stock after August 2, 2019.
Seth Grae, President & Chief Executive Officer of Lightbridge Corporation, commented, "This investment from both strategic and highly sophisticated investors comes at an exciting time in our development and is further validation of the progress we are making. We continue to generate strong support within the industry and look forward to finalizing our joint venture agreement with Framatome, formerly AREVA NP, in the first quarter of 2018. This investment not only enhances our balance sheet, but is expected to help further accelerate the commercial roll-out of our metallic fuel technology."
The financing is expected to close on or about January 23, 2018, subject to the satisfaction of customary closing conditions. Lightbridge Corporation is being advised by London based investment bank, Innovator Capital Limited.
The securities to be sold in the private placement have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or applicable state securities laws, and accordingly may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws. Lightbridge has agreed to file a registration statement with the Securities and Exchange Commission registering the resale of the shares of common stock issued in the private placement and the shares of common stock issuable upon the exercise of the warrants issued in the private placement.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities nor will there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.
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