25 January 2021
Avalon Advanced Materials Inc. is pleased to announce that it has entered into a $3,000,000 convertible security funding agreement with an entity managed by The Lind Partners, a New York based asset management firm.
The convertible security has a two year term and will accrue a simple interest rate obligation of 10% 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% 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. Avalon has the right to repurchase the convertible security at any time, 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. Next steps at Separation Rapids involve extraction of the 5,000 tonne bulk sample of the petalite mineralization for pilot plant processing to recover product samples for customer evaluation and finalization of the lithium hydroxide battery materials process flowsheet. The Company is presently looking at two alternatives for pilot plant processing of the bulk sample. In parallel, the Company will begin working on the feasibility study for its 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 9,800,000 common share purchase warrants. Each warrant entitles the holder to purchase one common share of the Company at a price of $0.18 per common share until 48 months after closing.Avalon Advanced Materials Inc. is pleased to announce that it has entered into a $3,000,000 convertible security funding agreement (the “Funding Agreement”) with an entity managed by The Lind Partners (“Lind”), a New York based asset management firm.