LibertyStream Announces Closing of Non-Brokered Private Placement of Units

LibertyStream Infrastructure Partners Inc. has closed a previously announced non-brokered private placement of 25,000,000 units at C$0.80 per unit, raising C$20,000,000 in gross proceeds. The offering included significant insider participation of C$2,178,912 by President and CEO Alex Wylie and affiliates, structured as a related party transaction under MI 61-101.

Each unit consists of one common share and one-half of one common share purchase warrant. The warrants are exercisable at C$1.10 per share for 24 months from closing. The company paid finder's fees of C$171,384 in cash and issued 214,230 non-transferable compensation warrants.

Net proceeds are designated for the development of direct lithium extraction (DLE) technology, scaling up lithium carbonate production facilities in the Midland Basin, providing product samples to potential customers, and general working capital. A commitment was made to file an SEC registration statement for the resale of underlying shares within five business days of a U.S. exchange listing, with efforts to have it declared effective within 60 days.

Libertystream Infrastructure Partners Inc. (LIB) closed its financing following the July 13 announcement, marking a routine follow-up to the January 2026 LIFE offering. The shares were priced at C$0.80, representing approximately a 27% discount to the January 2026 offering price of $1.10, a move indicating market pressure or a necessary concession to secure capital in the current environment.

Insider participation of approximately $2.18M signals management confidence and aligns their interests with shareholders. The capital injection addresses the immediate going concern flag noted in the Q1 2026 MD&A, extending the cash runway into late 2026. However, it does not eliminate the fundamental risk of a pre-revenue company requiring approximately $37M in total capital expenditure for the Freedom 1 facility.

The news aligns with previous expectations, providing operational runway while introducing significant dilution through 25M new shares and 12.5M warrants. The transaction funds the execution of the existing business plan rather than altering the strategic trajectory or providing a sudden liquidity surplus.

LibertyStream Infrastructure Partners Inc. (LIB) is a pre-revenue lithium development company focused on extracting lithium from oilfield brine using proprietary Direct Lithium Extraction (DLE) technology. Its flagship project, Freedom 1, is a 1,000-tonne-per-annum commercial-scale lithium carbonate facility located at Select Water Solutions' site in Howard County, Texas, within the Midland Basin.

The company has commissioned a fully automated Gen 6 DLE system, completed in July 2026. This upgrade reduced cycle times from 60 to 20 minutes and lowered media degradation. To date, the system has processed over 400,000 barrels of brine. LibertyStream has entered into a definitive agreement with Select Water Solutions to leverage existing water infrastructure, a move intended to reduce capital and operating costs. A royalty is payable to Select on production under this partnership.

Commercially, LibertyStream is targeting U.S. industrial and battery-grade customers. The company has secured a definitive offtake agreement for 600 tpa starting in 2027, with fixed pricing for two years.