Alpha Lithium Closes Oversubscribed $23,000,000 Bought Deal Offering
9:00 AM ET 2/19/21 | GlobeNewswire
Alpha Lithium Closes Oversubscribed $23,000,000 Bought Deal Offering
VANCOUVER, British Columbia, Feb. 19, 2021 (GLOBE NEWSWIRE) -- Alpha Lithium Corporation (TSX.V: ALLI) ("Alpha" or the "Company"), sole owner of one of the last large, undeveloped salars in Argentina's Lithium Triangle, is pleased to announce it has closed the previously announced short form prospectus offering of units (the "Units"), on a bought deal basis, for gross proceeds of $23,008,050 (the "Offering"). The Offering was conducted by Echelon Wealth Partners Inc. and Leede Jones Gable Inc. (the "Underwriters").
The net proceeds of the Offering will be used to fund the pursuit of strategic acquisitions, mineral exploration expenditures on the Company's Tolillar Lithium Project in Argentina, as well as general working capital purposes, all as further set out in the prospectus.
Brad Nichol, President and CEO, commented, "We are very pleased to see the broad-based, international, institutional support for Alpha Lithium. The completion of the offering has strengthened our balance sheet, and now with a solid cash position of more than $35 million, Alpha can extend the scope of its drilling program and accelerate some of the exceptional work being undertaken with Direct Lithium Extraction ("DLE") partners and technology providers. In addition to developing the Tolillar Salar in Argentina, the Company will be in a very strong position to consider opportunistic acquisitions, partnerships and enter DLE negotiations with various parties."
Each Unit consists of one common share of the Company and one common share purchase warrant (each, a "Warrant"), each Warrant being exercisable for a period of 24 months from the date of closing (the "Closing") at an exercise price of $1.10. The Underwriters received cash commission equal to 7% of the gross proceeds of the Offering and Underwriters' warrants that allow the Underwriters to purchase up to 1,988,350 common shares of the Company at a price of $0.81 for a period of 24 months from Closing. A total of 28,405,000 Units of the Company at a price per Unit of $0.81 were issued under the Offering, inclusive of the exercise of the over-allotment option in its entirety.
The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. This news release will not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.
ON BEHALF OF THE BOARD OF ALPHA LITHIUM CORPORATION
"Brad Nichol"
Brad Nichol
President, CEO and Director
For more information:
Alpha Lithium Investor Relations
Tel: +1 844 592 6337
info@alphalithium.com
About Alpha Lithium (TSX.V: ALLI)
