Lion One Announces Upsize of Units Private Placement Offering for Gross Proceeds of up to $3.5 Million
Lion One Metals Limited has upsized its previously announced non-brokered private placement of units from 23,076,923 to 26,923,076 Units, raising total gross proceeds of up to $3.5 million, driven by strong investor demand. The company is simultaneously closing the second tranche of a convertible debenture unit offering, bringing total gross proceeds from the combined offerings to approximately $16 million. Net proceeds will be primarily used to satisfy upcoming payment obligations under the company's senior secured loan facility with Nebari and to cure an ongoing working capital covenant default.
The size of the non-brokered private placement was increased from 23,076,923 Units to 26,923,076 Units. Total gross proceeds for the upsized private placement are up to $3.5 million. On June 29, 2026, the company closed the first tranche of the convertible debenture unit offering for gross proceeds of $12,500,000. The first tranche included a private placement component with gross proceeds of $2,788,184.75. Combined gross proceeds from the first tranche of the debenture offering and the initial private placement amount to approximately $15,288,184.75, with the upsized private placement adding up to $3.5 million.
Closing of the second tranche of the debenture offering and the upsized private placement is expected to occur on July 10, 2026. Funds are intended to satisfy upcoming payment obligations under the senior secured loan facility with Nebari Gold Fund I, LP, Nebari Natural Resources Credit Fund I, LP, and Nebari Natural Resources Credit Fund II, LP, and to cure an ongoing working capital covenant default. Any remaining proceeds will be used for general corporate and working capital purposes.
Each Unit consists of one Common Share and one Common Share purchase warrant. Each warrant is exercisable at a price of $0.175 per Common Share and expires 36 months from the date of issue. Closing is subject to customary conditions, including receipt of necessary approvals and satisfaction of TSX Venture Exchange listing conditions. All securities issued are subject to a statutory hold period of four months and one day after issuance. Any insider participation constitutes a related party transaction under MI 61-101 but is expected to be exempt from formal valuation and minority shareholder approval requirements. The company may pay further cash finders' fees in connection with the upsized private placement.