Lithium Ion receives $400k commitment for placement

Executive Summary

• Lithium Ion Energy Ltd. announced a non-brokered private placement of up to 15 million units at $0.04 per unit, raising up to $600,000 in gross proceeds, with $400,000 already committed by director Bataa Tumur-Ochir.
• The company is undergoing a significant corporate restructuring, including the immediate resignation of CEO Ali Haji and two directors, and the appointment of Sreenath Didugu as both a new director and interim CEO.
• Net proceeds from the financing will be used to maintain the existing exploration portfolio and for general working capital, while the new leadership aims to position the company for future growth.

Key Details

• Financing Structure: Non-brokered private placement of up to 15 million units.
• Price: $0.04 per unit.
• Gross Proceeds: Up to $600,000 total; $400,000 in firm commitment received from Bataa Tumur-Ochir (director and long-term investor).
• Unit Composition: Each unit consists of one common share and one common share purchase warrant.
• Warrant Terms: Each warrant allows the purchase of one common share at $0.05 per share, exercisable for 24 months from closing (subject to TSX-V approval).
• Hold Period: Statutory hold period of four months and one day from issuance.
• Use of Proceeds: Maintenance of existing exploration portfolio and general working capital.
• Regulatory Status: Completion subject to TSX Venture Exchange approval and other necessary regulatory approvals.
• Management Changes (Resignations):
  • Ali Haji: Resigned as Chief Executive Officer and Director (effective immediately).
  • Aneel Waraich: Resigned as Director (effective immediately).
  • Enkhtuvshin Khishigsuren: Resigned as Director (effective immediately).
• Management Changes (Appointments):
  • Sreenath Didugu: Appointed to the Board of Directors and as Interim Chief Executive Officer.
  • Didugu’s Background: Expertise in corporate advisory, capital markets, and financial strategy for resource companies; founding partner of QCapital Partners; holds a Bachelor of Finance from the Australian National University.

Notable Quotes

• Matthew Wood, Chairman: "The board is pleased to welcome Sreenath as interim chief executive officer and a member of the board. Sreenath's experience, leadership and strategic insight will be instrumental as the company undertakes its restructuring initiatives and positions itself to pursue future growth opportunities."