- Avalon Advanced Materials (AVL) has entered into a $3,000,000 convertible security funding agreement with Lind Global Fund II, LP
- Lind Global Fund II, LP is an entity managed by The Lind Partners, a New York-based institutional fund manager
- The convertible security will have a two-year term
- The proceeds will be used to accelerate the planned work program for the company’s Separation Rapids Lithium Project near Kenora, Ontario
- Avalon Advanced Materials Inc. is a mineral development company specializing in sustainably-produced materials for clean technology
- Avalon Advanced Materials Inc. (AVL) opened trading at $0.16 per share
Avalon Advanced Materials (AVL) has entered into a $3,000,000 convertible security funding agreement with Lind Global Fund II, LP.
The convertible security to be issued under the funding agreement will have a two-year term and will accrue a simple interest rate obligation of 10 per cent per annum on the funded amount, which is prepaid and attributed to its face value upon issuance, resulting in a face value of $3,600,000.
Lind will be entitled to convert the face value amount over a 24-month period, subject to certain limits, at a conversion price equal to 85 per cent of the five-day trailing volume-weighted average price of Avalon’s common shares prior to the date of conversion.
The convertible security matures 24 months after closing.
Commencing 30 days after the expiry of the 4-month statutory hold applicable to the convertible security, Avalon has the right to repurchase the convertible security, subject to the holder’s option to convert up to one third of the face value into Avalon common shares prior to this repurchase.
The proceeds will be used to accelerate the planned work program for the company’s Separation Rapids Lithium Project near Kenora, Ontario and cover near-term working capital requirements.
The work will include preparing for feasibility study work both at Separation Rapids and for the planned lithium battery materials refinery in Thunder Bay, Ontario.
In conjunction with the closing of the funding agreement, Lind will receive a closing fee of $90,000, and 9,000,000 common share purchase warrants.
Each warrant entitles the holder to purchase one common share of the company at a price of $0.26 per common share until 48 months after closing.
In accordance with Canadian securities laws, the securities issuable under this private placement will be subject to a hold period which expires four months and one day after closing.
The company has received conditional approval of the TSX in connection with this financing.
The Lind Partners manages institutional funds that are leaders in providing growth capital to small- and mid-cap companies publicly traded in the US, Canada, Australia and the UK.
Avalon Advanced Materials Inc. is a mineral development company specializing in sustainably-produced materials for clean technology.
Avalon Advanced Materials Inc. (AVL) opened trading at $0.16 per share.
