International Battery Metals Announces Closing Of Previously Announced Fourth Follow-On Investment From EV Metals 9 LLC, Adding USD $2.8 Million Under Existing LOI

Financing Closing Details

• International Battery Metals Ltd. (IBAT) closed a non-brokered private placement financing with EV Metals VII LLC on April 29, 2026.
• Gross proceeds raised were USD $2.8 million (approximately C$3.8 million).
• The transaction issued 34,315,465 units at a price of USD $0.08 per unit (C$0.111 per unit).
• Each unit consists of one common share and one warrant to purchase one additional common share.

Warrant Terms and Ownership Impact

• New warrants have an exercise price of C$0.148 per share, valid for four years from issuance.
• EV Metals and affiliated entities under Jacob Warnock control increased their beneficial ownership from 45.58% to 57.01% on a partially-diluted basis.
• Post-closing, insiders hold 143,641,569 common shares and 120,741,648 warrants.

Use of Proceeds

• Funds are designated for general corporate purposes and the advancement of next-generation modular direct lithium extraction (DLE) technology.
• A cash structuring fee equal to 5% of gross proceeds was paid to Jacob Warnock.

Dilution and Valuation Compression

• The financing price of C$0.111 per unit is below the recent trading range of $0.14-$0.16, indicating a discount issuance that dilutes existing shareholders at depressed valuations.
• This marks the fourth tranche of a previously announced LOI totaling USD $15 million, confirming ongoing capital needs rather than operational self-sufficiency.
• Insider ownership exceeding 57% significantly reduces minority shareholder influence and governance checks.

Cash Runway vs. Burn Rate

• The company reported an operating loss of $(3.0)M in Q3 FY2026 with revenue of only $30k, highlighting a lack of commercial traction despite "commercial discussions."
• While the C$3.8 million injection extends cash runway, it does not solve the fundamental issue of negative cash flow from operations.
• The financing is expected to be Routine - Negative due to the dilutive nature and confirmation of capital dependency.

Business Model

• IBAT focuses on modular direct lithium extraction (DLE) technology, utilizing patented extraction columns housed in transportable skid-mounted platforms.
• The company targets brine resources globally, with recent focus on Utah (commercial implementation claimed), Argentina, the Middle East, and the U.S.

Development Stage

• The company is in a pre-revenue or early commercialization stage, evidenced by Q3 FY2026 revenue of only $30k from testing services.
• Technology claims include rapid deployment and adaptation to diverse brine conditions, but independent verification of large-scale production efficiency is pending.

Strategic Partnerships

• Exclusive 18-month collaboration with a major Middle Eastern energy service provider announced in September 2025.
• No specific project revenue or joint venture equity stakes have been disclosed from this partnership yet.