Lithium Ion closes $1.4-million private placement

Executive Summary

• Lithium Ion Energy Ltd. has closed an upsized non-brokered private placement, issuing 35,237,500 units at $0.04 per unit for gross proceeds of $1,409,500.
• The offering includes the issuance of 35,237,500 warrants exercisable at $0.05 per share, expiring 24 months from closing.
• Insiders (Sreenath Didugu, Matthew Wood, and Robert Payment) subscribed for 3.25 million units ($130,000), constituting a related-party transaction relying on specific exemptions from Multilateral Instrument 61-101.
• The company also granted 7 million incentive stock options to directors, officers, and consultants at an exercise price of $0.05 per share.

Key Details

• Units Issued: 35,237,500 units.
• Price Per Unit: $0.04.
• Gross Proceeds: $1,409,500.
• Unit Composition: Each unit consists of one common share and one common share purchase warrant.
• Warrant Terms: Each warrant entitles the holder to purchase one common share at $0.05 per share.
• Warrant Expiration: 24 months from the closing date.
• Finders' Fees: Aggregate cash fees of $44,070 paid to arm's-length finders.
• Finders' Warrants: 1,101,750 finders' warrants issued to assist in introducing subscribers.
• Use of Proceeds: Assess new growth opportunities, maintain existing exploration portfolio, and general working capital.
• Hold Period: Four-month hold period expiring on July 14, 2026.
• Insider Participation: Sreenath Didugu, Matthew Wood, and Robert Payment subscribed for 3.25 million units for $130,000.
• Regulatory Status: Completion subject to TSX-V approval; exemptions from formal valuation and minority shareholder approval under MI 61-101 relied upon as insider participation does not exceed 25% of market capitalization.
• Incentive Stock Options: 7,000,000 options granted to directors, officers, and consultants.
• Option Exercise Price: $0.05 per share.
• Option Term: Five years from date of grant.
• Vesting: Immediate vesting.

Notable Quotes

• None provided in the text.