Offer includes 25 million units at C$0.80
LibertyStream Infrastructure Partners Inc. Plans a non-brokered private placement worth up to C$20,000,000. The company aims to sell up to 25,000,000 units at C$0.80 each.
LibertyStream trades on the TSXV under LIB, on the OTCQB under VLTLF and on the FSE under I2D.
Each unit includes one common share and one-half of one common share purchase warrant. Each whole warrant lets the holder buy one additional common share at C$1.10 for 24 months after closing.
Certain insiders and their affiliates are expected to buy about C$1,700,000 of the securities. That group includes Alex Wylie, the company’s president and chief executive officer.
Because insiders plan to join the financing, that part of the deal is a related party transaction under Multilateral Instrument 61-101. The company is relying on the exemptions in sections 5.5(a) and 5.7(1)(a) of MI 61-101.
Neither the fair market value of the securities to be bought by insiders nor the consideration they will pay will exceed 25% of LibertyStream’s market capitalization.
The company expects to close the offering within 21 days of the announcement. LibertyStream also said it will not file a material change report for the related party transaction at least 21 days before closing because it wants to complete the financing quickly.
The board of directors unanimously approved the offering. Further details on each related party’s interest and the effect on ownership percentages will be provided once final terms are set.
Midland Basin production scale-up
Net proceeds will fund direct lithium extraction technology aimed at improving operating efficiencies. They will also support the scale-up of lithium carbonate production facilities in the Midland Basin in Texas.
Meanwhile, the company plans to create avenues to provide lithium carbonate and other lithium product samples to potential future customers and off-takers. Part of the raise will also go to general working capital and corporate purposes.
LibertyStream may pay a cash commission of up to 6% of the gross proceeds to registered investment dealers and exempt market dealers that place units in the offering. It may also issue non-transferable compensation warrants equal to up to 6% of the units sold through those eligible brokers.
