Grounded Lithium Announces $5,000,000 Unit Offering to Bolster Working Capital Reserves
Grounded Lithium Announces $5,000,000 Unit
Offering to Bolster Working Capital Reserves
/NOT FOR DISSEMINATION IN
THE UNITED STATES
. FAILURE TO COMPLY WITH THIS
RESTRICTION MAY CONSTITUTE A VIOLATION OF
UNITED STATES
SECURITIES LAW./
CALGARY, AB
,
Sept. 29, 2022
/CNW/ - (TSXV: GRD) - Grounded Lithium Corp. ("
GLC
" or the
"
Company"
) is pleased to announce it entered into an agreement with Red Cloud Securities Inc.
("
Red Cloud
" or the "
Agent
") to act as sole agent and sole bookrunner in connection with a best
efforts private placement for aggregate gross proceeds of up to
$5,000,000
(the "
Offering
")
through the issuance of up to 20,000,000 units (the "
Units
") at a price of
$0.25
per Unit.
Red Cloud
will have an option (the "
Agent's Option
") to offer for sale up to an additional 10% of the number of
Units sold in the Offering, which Agent's Option is exercisable, in whole or in part, at any time up to
48 hours prior to the closing of the Offering.
Each Unit will be comprised of one common share of the Company (a "
Common Share
") and one-
half of one Common Share purchase warrant (each whole warrant, a "
Warrant
"). Each Warrant
shall be exercisable to acquire one Common Share (a "
Warrant Share
") at a price of
$0.50
per
Warrant Share for a period of 24 months from the closing of the Offering.
The Company intends to use the net proceeds from the Offering for its ongoing operations both in
the field and in the lab as the Company works toward the completion of two important short-term
objectives: (1) engagement of an internationally recognized engineering firm to assist and ultimately
recommend selection of the chosen extraction technology for GLC's brine resources, and (2)
completion of a preliminary economic assessment on the Company's Kindersley Lithium Project.
Attainment of these two short-term objectives sets the stage for further operational and valuation
milestones as the Company measurably moves towards our goal of commercial production.
The Offering is scheduled to close on or about the week of
October 17, 2022
, or such date as
agreed upon between the Company and the Agent (the "
Closing
") and is subject to certain
conditions including, but not limited to, the receipt of all necessary approvals including the approval
of the TSX Venture Exchange ("
TSXV
"). The Units and the underlying securities of the Units to be
issued under the Offering will have a hold period of four months and one day from the respective
date of issuance.
At Closing, the Company will pay to the Agent a cash commission equal to 7.0% of the aggregate
gross proceeds arising from the Offering (including in respect of any exercise of the Agent's Option)
other than in respect of any Units issued to purchasers on a president's list for which no commission
will be paid. The Company will also grant the Agent, on the date of Closing, a non-transferable
broker warrant (the "
Broker Warrant
") equal to 7.0% of the total number of Units sold pursuant to
the Offering (including in respect of any exercise of the Agent's Option) other than in respect of any
Units issued to purchasers on a president's list for which no commission will be paid. Each Broker
Warrant will entitle the holder thereof to purchase one Common Share at an exercise price per
Broker Warrant equal to
$0.25
for a period of 24 months following the Closing.
GLC advises that certain insiders of the Company may participate in the Offering, which will be
completed pursuant to available related party exemptions under Multilateral Instrument 61-101. The
Offering is subject to TSXV approval.
Grant of Stock Options
The Company also announces the intention to grant upon Closing, an additional 2,000,000 stock
options to certain officers, employees, directors and consultants of the Company at a strike price of
$0.25
. Options granted will be pursuant to the Company's approved stock option plan. The grant of
the options is subject to approval by the TSXV.
About Grounded Lithium Corp.
GLC is a publicly traded lithium brine exploration and development company that controls 2.9 million
tonnes of lithium carbonate equivalent over its focused land holdings in Southwest Saskatchewan.
GLC's multi-faceted business model involves the consolidation, delineation, exploitation and ultimate
development of its opportunity base to fulfill our vision to build a best-in-class, environmentally
responsible, Canadian lithium producer supporting the global energy transition shift.
Forward-Looking Statements
This press release may contain forward-looking statements and forward-looking information within
the meaning of applicable Canadian securities laws. The opinions, forecasts, projections and
statements about future events of results, are forward looking information, forward-looking
statements or financial outlooks (collectively, "
forward-looking statements
") under the meaning of
applicable Canadian securities laws. These statements are made as of the date of this press
release and the fact that this press release remains available does not constitute a representation
by GLC that the Company believes these forward-looking statements continue to be true as of any
subsequent date. Although GLC believes that the assumptions underlying, and expectations reflected
in, these forward-looking statements are reasonable, it can give no assurance that these
assumptions and expectations will prove to be correct. Such statements include, but are not limited
to, statements regarding the Offering including the number of Units sold, the gross proceeds from
the Offering, use of proceeds of the Offering, the timing and ability of the Company to satisfy the
conditions of the TSXV and completion of the Offering, achieving project milestones, commercializing
GLC's operations, and GLC's vision of becoming a best-in-class, environmentally responsible,
Canadian lithium producer supporting the global energy transition.
Among the important factors that could cause actual results to differ materially from those indicated
by such forward-looking statements are: GLC's expectation that our operations will be in
Western
Canada
, unexpected problems can arise due to technical difficulties and operational difficulties which
impact the production, transport or sale of our products; geographic and weather conditions can
impact the production; the risk that current global economic and credit conditions may impact
commodity prices and consumption more than GLC currently predicts; the failure to obtain financing
on the terms set out herein or other reasonable terms; risks relating to the ability of the Company to
obtain required approvals to complete the Offering on the terms announced; volatility in the trading
price of the common shares of the Company; the risk that unexpected delays and difficulties in
developing currently owned properties may occur; the failure of drilling to result in commercial
projects; unexpected delays due to the limited availability of drilling equipment and personnel; and
the other risk factors detailed from time to time in GLC's periodic reports. GLC's forward-looking
statements are expressly qualified in their entirety by this cautionary statement.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy
any securities in any jurisdiction.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is
defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy
or accuracy of this news release.
SOURCE
Grounded Lithium Corp
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For further information:
Gregg Smith, President & CEO, [email protected]; Greg
Phaneuf, VP Finance & CFO, [email protected], Phone:
587.319.6220
CO: Grounded Lithium Corp
CNW 16:00e 29-SEP-22