• International Lithium (ILC) is planning to restructure its loans and raise capital by conducting a private placement 
  • The company will issue over 60 million bonus share purchase warrants to lenders, to substitute debentures with non-convertible debt loans
  • International Lithium plans to issue up to 3.7 million units at five cents each, for C$185,000 in gross proceeds
  • Proceeds of the private placement will go towards the company’s general and administrative expenses and working capital
  • International Lithium is up 12.5 per cent, and is currently trading for 4.5 cents per share

International Lithium (ILC) has set out a plan to restructure its loans and raise capital by conducting a private placement.

To restructure its debts, the company will issue 60,355,000 bonus share purchase warrants to lenders. This will result in debentures worth a total C$3,017,750 will be substituted by non-convertible debt from the lenders to International Lithium. 

These loans will bear an interest rate of 12.5 per cent per year, and will be payable semi-annually. They will mature on either June 30, 2022 or September 30, 2023, depending on the choice of the lenders.

In addition to restructuring its indebtedness, International Lithium plans to conduct a private placement. Through the placement, the company will issue up to 3.7 million units at five cents each, for C$185,000 in gross proceeds.

Each unit will contain one common share and half of a share purchase warrant. Each whole warrant will be exercisable into one common share for 7.5 cents each, until December 31, 2023.

Proceeds from the private placement will go towards the company’s general and administrative expenses and working capital. All securities issued through the placement will be restricted from trading for four months and one day, from the placement’s closing date.

International Lithium’s Chairman and CEO, John Wisbey, commented on the company’s shake-up of its current balance sheet. 

“This structure is better for the company than the convertible debentures that it replaced, because the term of the majority of our debt after this refinancing is now over one year, unless the company is able to repay it early,” he said.

“We intend raising more capital in 2021, and this strengthens the balance sheet in a way that is desirable for both ILC’s existing and future shareholders,” he added.

International Lithium is up 12.5 per cent and trading for 4.5 cents per share, as of 12:28pm EST.

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