Li-Metal announces private placement financing of up to $2,000,000

Funding will support Li-Metal’s continued development of lithium metal and anode technologies

Toronto, Ontario–(Newsfile Corp. – June 12, 2024) – Li-Metal Corp. (CSE: LIM) (OTCQB: LIMFF) (FSE: 5ZO) (“Li-Metal” or the “Company”), a developer of lithium metal anodes and lithium metal production technologies essential to next generation batteries , is pleased to announce the launch of a non-brokered private placement to raise gross proceeds of up to $2,000,000, comprising 20,000,000 units (each a “Unit”), at $0.10 per unit (the placement “).

The Company also announces that it is currently in advanced discussions with an independent party for the potential sale of the Company’s lithium production business. At this time, the parties have not agreed to the terms or timing of any transaction and there can be no assurance that an agreement will be reached or that a transaction will be completed. The intent of the transaction would be to improve the Company’s balance sheet and provide capital to enable the Company to focus on the lithium metal anode business.

The offering

Each Unit will consist of one common share of the Company and one-half of one common share purchase warrant, and each whole warrant (a “Warrant”) will entitle the holder to purchase one share common stock of the Company at a price of $0.20 per share for a period of 24 months following the date of issue. In addition, the Warrants may be repurchased during the 24-month period, at the Company’s option, in the event that the 20-day volume weighted average price of the Company’s common stock reaches or exceeds 0.40 $ for 10 consecutive trading days, depending on whether it trades on a recognized Canadian exchange (which includes the Canadian Securities Exchange). Subscribers will be informed of the triggering of the purchase clause and will have 30 days to exercise the Warrants.

All securities issued under the Offer will be subject to a statutory hold period of four months and one day from the date of issue. The expected closing date of the offering is June 28, 2024. Closing of the financing is subject to approval by the CSE.

The Offering will be made by the Company using the prospectus exemption for existing security holders under Regulation 45-501 of the Ontario Securities Commission – Prospectus and registration exemptions in Ontario and other equivalent provisions of securities laws applicable in other jurisdictions in Canada (collectively, the “Existing Security Holder Exemptions”) as well as the “Accredited Investor” Exemption under National Instrument 45-106 . Prospectus and registration exemptions as well as other exemptions available to the Company.

The story continues

The Company will make the Offer available to all shareholders of the Company as of June 7, 2024 (the “Record Date”) who are eligible to participate under the exemptions for existing security holders and who have notified the Company no later than June 21, 2024 at 5:00 p.m. (Eastern Time) of their intention to participate in the Offer. Exemptions for existing security holders limit a shareholder to a maximum investment of $15,000, unless the shareholder certifies in the subscription agreement that he or she has obtained advice regarding the suitability of the investment from a broker-dealer. registered investment or is otherwise eligible to rely on another private placement exemption. .

In the subscription agreement, shareholders will be required to certify the number of ordinary shares of the Company held on the record date and the total number of units to which they wish to subscribe. Each shareholder existing on the record date will be entitled to purchase a number of units equal to at least his or her pro rata share of the common stock held on the record date, subject to a minimum subscription of $4,000. . Any additional shares available will be allocated by the Company based on subscriptions received and shares available. Orders will be processed by the Company on a first come, first served basis, such that it is possible that a subscription received from a shareholder will not be accepted by the Company if the Offer is oversubscribed. Any person who becomes a shareholder of the Company after the Record Date will not be entitled to participate in the Offering under the existing security holder exemptions.

The Company intends to use the net proceeds of the Offering for general working capital purposes.

Existing shareholders of the Company are encouraged to contact the Company for further information regarding subscriptions for shares under the Existing Shareholder Exemption as follows:

Contact: Srini Godavarthy, CEO
Telephone: +1 647-494-4887
Email: [email protected]

About Li-Metal Corp.

Li-Metal is a Canadian vertically integrated battery materials company and innovator commercializing technologies to produce next-generation batteries for electric vehicles and other applications. We believe our patented lithium metal technology, next-generation battery anode technology and production methods are significantly more sustainable than existing solutions and deliver lighter, more energy dense and safer batteries. Li-Metal’s battery materials support battery developers’ ability to power more cost-effective electric vehicles that go further and unlock the future of transportation. For more information, visit: https://li-metal.com.

Forward-looking information

This press release contains “forward-looking information” within the meaning of securities laws applicable to the Company. These forward-looking statements can be identified by words such as “expects,” “anticipates,” “believes,” “projects,” “plans” and similar expressions. Readers are cautioned not to place undue reliance on forward-looking statements. Statements regarding, among other things, the Company’s strategic plans and financing are forward-looking information. These statements should not be construed as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. Although these statements are based on management’s reasonable assumptions, there can be no assurance that the development of the Company’s activities will be achieved as described above or that the financings will be completed. The Company assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances, except as required by applicable law.

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