Full Circle Lithium adds two U.S. distribution partners

Executive Summary

• Full Circle Lithium Corp. expanded its U.S. distribution network by adding two new partners, Golden Enterprises Inc. and Shur-Sales & Marketing Inc., bringing the total number of U.S. distributors to 10.
• The company announced strategic discussions to deploy its FCL-X lithium battery fire extinguishing products within U.S. government agencies (EPA, DOE, DOD) and the waste management sector, with initial pilot deployments expected in the coming months.
• Full Circle retained Machai Capital Inc. for marketing services and ICP Securities Inc. for market-making, outlining specific compensation structures including cash fees, share options, and monthly retainers.

Key Details

• Distribution Expansion:
  • New partner: Golden Enterprises Inc. (serving New York).
  • New partner: Shur-Sales & Marketing Inc. (covering Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, New Mexico, Nevada, Oregon, Washington, Wyoming, and Utah).
  • Total U.S. distributors now stand at 10.
  • Focus on California and New York as key markets for lithium-ion battery safety solutions.
• Vertical Market Opportunities:
  • Targeting U.S. government agencies (EPA, DOE, DOD, military) and waste management industry participants.
  • Addressing fire risks in waste transfer trucks, recycling centers, landfills, transit depots, and postal facilities.
  • Company expects to announce initial pilot deployments and collaborative projects over the coming months.
• Marketing Agreement (Machai Capital Inc.):
  • Services: Digital marketing, branding, content, data optimization, SEO, SEM, lead generation, social media, email, and brand marketing.
  • Compensation: $200,000 plus applicable taxes.
  • Equity Component: 250,000 common share purchase options with a 12-month vesting period and two-year expiry.
  • Status: Arm's length; subject to TSX Venture Exchange approval.
• Market-Making Agreement (ICP Securities Inc.):
  • Services: Automated market-making using proprietary algorithm "ICP Premium."
  • Compensation: Monthly cash fee of $7,500 plus applicable taxes.
  • Term: 12-month initial term starting Sept. 5, 2025, with automatic monthly renewals unless 30 days' notice is given.
  • Equity Component: None.
  • Status: Compliance with TSX Venture Exchange policies.

Notable Quotes

• "Partnering with Golden Enterprises and Shur-Sales enables FCL to reach two of the largest and most advanced public safety markets in the U.S. These partnerships position us to better serve municipalities, first responders and commercial/industrial clients that are facing an urgent need for effective lithium-ion battery fire extinguishing agents given the lack of effective extinguishing agents in the market." — Carlos Vicens, Chief Executive Officer