Li-Metal Corp. Secures $750,000 in Funding with Plans for a $10 Million Equity Financing

Li-Metal Corp., a key player in lithium metal anode and production technology for advanced batteries, announced an initial $750,000 equity investment from Blue Horizon Advisors LLC. This investment is set to fund the expansion of Li-Metal's commercial-scale anode production planned for 2024. The Toronto-based company also disclosed its intention to raise an additional $10 million in a subsequent equity financing round.

The current funding agreement, set to close on April 25, 2024, stipulates Blue Horizon will purchase 5,161,500 units at CDN$0.20 per unit. Each unit includes one common share and a half-warrant, each full warrant allowing purchase of another common share at $0.63 within three years. The funding terms include a ratchet mechanism to adjust the unit price in the event of a subsequent lower-priced share issue. Moreover, the financing deal includes resale restrictions, with a four-month minimum hold period starting from the closing date.

Furthermore, Li-Metal has entered into a strategic advisory agreement with Blue Horizon, effective on the financing's closing date, to bolster corporate strategy, commercial activities, and partnership management over the next 12 months. The engagement leniencies include a $1,000,000 fee contingent on completing the additional $10 million financing.