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, issuing 25,000,000 units at C$0.80 per unit for 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 to purchase one additional common share at C$1.10 for a period of 24 months from closing.

Company insiders, including President and Chief Executive Officer Alex Wylie, participated in the offering for a combined C$2,178,912. The company said the participation qualifies as a related party transaction under Multilateral Instrument 61-101 but that it is relying on exemptions from valuation and minority shareholder approval requirements, as the insider consideration does not exceed 25% of the company's market capitalization. The offering was unanimously approved by the board of directors.

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

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

The company also stated it has agreed 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 commercially reasonable efforts to obtain SEC effectiveness within 60 days of filing. The company noted there is no assurance a U.S. exchange listing will occur or that any registration statement will be filed or declared effective.

Securities issued to Canadian investors are subject to a four-month statutory hold period under Canadian securities laws and a 12-month U.S. restricted period under Regulation S.

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