LibertyStream closes C$20M private placement of units

LibertyStream Infrastructure Partners Inc. (TSXV: LIB | OTCQB: VLTLF | FSE: I2D) has closed a non-brokered private placement of 25,000,000 units at C$0.80 per unit, raising aggregate gross proceeds of C$20,000,000.

Each unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant is exercisable at C$1.10 per share for 24 months from the closing date.

Company insiders, including President and CEO Alex Wylie, participated in the offering for a combined C$2,178,912. The company classified this participation as a related party transaction under Multilateral Instrument 61-101, relying on exemptions from valuation and minority shareholder approval requirements. The offering was unanimously approved by the board of directors.

The company paid finder's fees of C$171,384 in cash commissions and issued 214,230 non-transferable compensation warrants to registered investment dealers and exempt market dealers involved in the offering. Each compensation warrant allows the holder to acquire one unit at C$1.10 for two years from issuance.

According to the company's statement, net proceeds will be used to develop its direct lithium extraction technology, scale up lithium carbonate production facilities in the Midland Basin in Texas, provide product samples to potential customers, and fund general working capital and corporate purposes.

The company also stated it intends to file a registration statement with the U.S. Securities and Exchange Commission to register for resale the common shares underlying the units within five business days of any listing on a U.S. stock exchange, with efforts to have the statement declared effective within 60 days of initial filing. The company noted no assurance can be given that a U.S. exchange listing will occur or that any registration statement will be filed or declared effective.

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