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OTTAWA, ON / ACCESS WIRE / June 2, 2021 / Stria Lithium Inc. (“Stria” or the “Company”) (TSXV: SRA), is pleased to provide the following stock updates for the previously announced debt transaction on September 28, 2020, March 17, 2021 , April 1, 2021, and May 14, 2021 (the “Debt transaction actions“) and a private placement without intermediary previously announced on March 17, 2021 (the”Offer“).
Following the press release dated March 17, 2021, the Company is pleased to announce that it has finalized the terms of the previously announced borrowing transaction and that it will issue a total of 20,000,000 ordinary shares. in the Company’s capital (the “Ordinary actions“) at a deemed price of $ 0.025 per share to settle $ 500,000 of the outstanding debt.
The transaction is considered a “related party transaction” within the meaning of Multilateral Instrument 61-101 – Protection of holders of minority securities in special transactions (“MI 61-101“) given that the creditor is a company controlled by a director and chairman of the board of directors of Stria. The shares for the borrowing transaction are exempt from the formal valuation requirements of MI 61-101 in accordance with the subsection 5.5 (b) of MI 61-101 as the Company is not listed on a specified stock exchange.
In accordance with NI 61-101 and the policies of the Bourse, the share purchase transaction is subject to the approval of minority shareholders. The Company requested and obtained the approval of the minority shareholders of the Shares for the borrowing transaction at the Company’s Annual General and Extraordinary Meeting on May 21, 2021.
Completion of the share purchase transaction is subject to the approval of the TSX Venture Exchange (the “Exchange“).
Stria is also pleased to provide an update on an offering of up to 52,000,000 units (the “Units“) of the Company at a price of $ 0.025 per Unit (the”Offer price“) for total gross proceeds accruing to the Company up to a maximum of $ 1,300,000. Each unit will consist of one common share and one non-transferable common share purchase warrant (a”To guarantee“) of the Company. Each warrant will entitle its holder to acquire one common share (a”Warrant share“) at an exercise price per warrant share of $ 0.05 for a period of 2 years from the closing of the offering (the”Closing Date“).
The net proceeds of the Offering will be used to maintain the Company’s existing operations and general working capital needs and will not be used to pay management fees or for investor relations activities.
The Offer is expected to be closed in tranches, with the first tranche to be closed as soon as possible subject to certain conditions, including, but not limited to, receipt of all necessary approvals, including the approval of the Exchange. .
Units will be sold by way of private placement to qualified investors in accordance with the “accredited investor” exemption or other available and agreed exemptions from the prospectus requirements. The common shares, the warrants and the shares covered by the warrants will have a holding period of four months and one day from the date of issue. This press release does not constitute an offer to sell or the solicitation of an offer to buy, and there will be no sale of such securities in any jurisdiction in which such an offer, solicitation or sale would be illegal prior to ‘registration or qualification under the title laws of such jurisdiction.
About Stria Lithium
Stria Lithium is a growing technology-driven junior Canadian mining exploration company and is the sole owner of the Pontax spodumene lithium property in northern Quebec.
Lithium is an essential metal in the universal fight against global warming. It is an essential component of lithium-ion batteries used to power electric vehicles and for energy storage on an industrial scale.
For more information on Stria Lithium, please visit www.strialithium.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Caution Regarding Forward-Looking Statements
This press release contains “forward-looking statements”. Forward-looking statements may be identified by words such as: “anticipate”, “intend”, “plan”, “objective”, “seek”, “believe”, “project”, “estimate”, “” ‘expect’,, “” future “,” likely “,” may “,” should “,” will “and similar references to future periods. Examples of forward-looking statements include, but are not limited to, statements that we are dealing with the closing of the Transaction and the number of shares that can be issued to the Lender in connection with the Transaction.
Forward-looking statements are neither historical facts nor guarantees of future performance. Instead, they are based solely on our current beliefs, expectations and assumptions about the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are beyond our control. Our actual results and financial condition may differ materially from those shown in forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in forward-looking statements include, but are not limited to, fluctuations in the price of the Company’s listed shares and obtaining necessary shareholder approvals and of the TSX Venture Exchange to complete the transaction.
Any forward-looking statements we make in this press release are based solely on information currently available to us and speak only as of the date on which they are made. Unless required by applicable securities laws, we assume no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether subsequent to new information, future developments or otherwise. . .
Stria Lithium inc.
SOURCE: Stria Lithium inc.
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