Full Circle Lithium Announces Upsize and Closing of First Tranche of Previously Announced Private Placement
Rhea-AI Summary
Full Circle Lithium (OTCQB:FCLIF) closed the first tranche of its previously announced non-brokered private placement, upsizing the Offering from 12,500,000 to 20,000,000 Units for gross proceeds of up to C$8.0 million. In the first tranche, the company issued 8,570,000 Units at C$0.40 per Unit, raising approximately C$3,428,000. Each Unit includes one common share and one-half warrant, with each whole warrant exercisable at C$0.70 for 18 months, subject to an acceleration clause. Net proceeds are expected to fund production capacity, inventory, sales and marketing for FCL-X™ lithium-ion battery fire suppression products and working capital. Insiders subscribed for 1,457,500 Units, and the company paid approximately C$17,500 in cash finders’ fees and issued 48,125 finder warrants.
Positive
- Offering upsized to 20,000,000 Units for up to C$8.0M gross proceeds
- First tranche raised approximately C$3.428M from 8,570,000 Units at C$0.40
- Use of proceeds targeted to expand FCL-X™ production, inventory, sales and marketing
- Insiders subscribed for 1,457,500 Units, within MI 61-101 25% threshold
Negative
- Equity Units and attached warrants increase share count and potential dilution
- Cash finder’s fees of approximately C$17,500 plus 48,125 finder warrants add costs
- All first-tranche securities face four-month-plus-one-day statutory hold and 12-month transfer restriction
News Market Reaction – FCLIF
In the Jul 15 session, FCLIF declined 0.03%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Pursuant to the first tranche, the Company issued 8,570,000 Units at a price of
Each Unit consists of one common share of the Company and one-half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one additional common share of the Company at an exercise price of
Net proceeds from the Offering are expected to be used to expand production capacity, inventory, sales and marketing initiatives for the Company's growing portfolio of FCL-X™ lithium-ion battery fire suppression products, as well as for general working capital.
"We are extremely grateful for the continued confidence and strong support shown by both our existing shareholders and new investors," said Carlos Vicens, Chief Executive Officer of Full Circle Lithium. "The response to this financing has been exceptionally encouraging and reflects growing confidence in our strategy, our expanding commercial opportunities, and the increasing market demand for FCL-X™. We sincerely thank our shareholders for their ongoing support as we continue to execute on our growth plans."
Closing of the second tranche of the Offering is subject to certain customary conditions, including receipt of all necessary approvals, including satisfaction of the listing conditions of the TSX Venture Exchange ("TSXV"). The Offering may be closed in one or more additional tranches.
In connection with the first tranche of the Offering, the Company paid cash finder's fees of approximately
Certain insiders of the Company (collectively, the "Insiders") subscribed to the Offering for an aggregate of 1,457,500 Units. This issuance of Units to the Insiders constitutes a "related party transaction" as such term is defined under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company is relying on an exemption from the formal valuation and minority shareholder approval requirements provided under MI 61-101 pursuant to section 5.5(a) and section 5.7(a) of MI 61-101, on the basis that the participation in the Offering by Insiders does not exceed
All securities issued pursuant to the first tranche are subject to a statutory hold period of four months and one day from the date of issuance, in accordance with applicable securities laws and the policies of the TSX Venture Exchange. The securities are also subject to a contractual restriction on transfer for 12 months from the date of issuance.
The securities offered have not been registered under the
About Full Circle Lithium Corp.
FCL is a U.S.-based manufacturer of sustainable solutions for the lithium battery safety sector. Its flagship product innovation, FCL-X™, is a proprietary, non-hazardous, water-based fire-extinguishing agent designed specifically to combat the growing threat of lithium-ion battery fires. Backed by a world-class technical team, FCL is committed to delivering safe, effective, and environmentally responsible fire mitigation technologies.
For more information:
Carlos Vicens – CEO & Director
Email: ir@fcl-x.com
Phone: +1.416.977.3832
Cautionary Statement
Neither TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking statements within the meaning of securities legislation in Canada, and which are based on the expectations, estimates, and projections of management of the parties as of the date of this news release, unless otherwise stated. Forward-looking statements are generally identifiable by use of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "could", "believe", "plans", "intends" or the negative of these words or other variations on these words or comparable terminology. More particularly, and without limitation, this news release contains forward-looking statements and information concerning expectations on the effectiveness of the marketing and sales of FCL-X™ through distribution agreements, the viability, effectiveness, safety and additional commercialization related to FCL-X™ which is at an early stage of commercialization (which is very difficult for a start-up venture like FCL as there are much larger and better capitalized established companies that can potentially quickly enter the lithium-ion battery fire-fighting market and create strong competition against FCL), on receiving patent protection for FCL-X™ and related inventions and processes, the ability of FCL, a start-up venture, to successfully commercialize its FCL-X™ including ramping-up production of the agent to meet potential demand, continue raising capital, upgrading and refurbishing its plant, and sourcing feedstock for this and its other lines of business. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the uncertainties and risk factors related to the loss of key technical and other staff, the battery fire-extinguishing agent functioning as expected to meet safety requirements and fire-fighting related government regulations and potential client product specifications, and applicable environmental requirements and issues – see additional risks described in FCL's public filings. Actual results, developments and timetables could vary significantly from the estimates presented. Readers are cautioned not to put undue reliance on forward-looking statements. FCL disclaims any intent or obligation to update publicly such forward-looking statements, whether as a result of new information, future events or otherwise, unless required by law. Additionally, FCL undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of FCL, its financial or operating results or its securities.
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SOURCE Full Circle Lithium Inc