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CALGARY,
AB, Nov. 19, 2024 /CNW/ - Volt Lithium Corp.
(TSXV: VLT) ("Volt" or the "Company") is pleased to
announce that it has successfully raised approximately $6.2 million under its previously announced
public financing (the "Offering"). The Offering was
undertaken on a "best efforts" agency basis led by Canaccord
Genuity Corp. (the "Agent") pursuant to the terms and
conditions of an agency agreement dated November 13, 2024 (the "Agency
Agreement") entered into between the Company and the Agent.
Volt was also advised on the Offering by 3L Capital Inc.
Under the Offering, Volt issued 19,930,000 units
("Units") at a price of $0.31
per Unit (the "Offering Price") and, raising gross proceeds
of approximately $6.2 million, which
included the exercise in full of the over-allotment option granted
to the Agent to purchase an additional 2,430,000 Units. The
Offering was completed pursuant to the prospectus supplement of
Volt dated November 13, 2024 to the
(final) short form base shelf prospectus of Volt dated July 20, 2023.
Pursuant to the Agency Agreement, all of the directors and
officers of Volt have entered into lock-up agreements with the
Agent for a period of 90 days from the date hereof prohibiting
their disposition of securities of the Company, subject to certain
customary exceptions.
Concurrent with the closing of the Offering, certain subscribers
purchased a total of 1,128,709 Units at the Offering
Price on a private placement basis, raising gross proceeds of
approximately $350,000 in the first
tranche closing (the "Concurrent Private Placement"). The
Units issued pursuant to the Concurrent Private Placement are
subject to a four month hold period expiring on March 20, 2025. The Company expects to
close a second tranche of the Concurrent Private Placement in the
coming weeks. Through both the Offering and Concurrent Private
Placement, Volt raised gross proceeds of approximately $6.5 million.
In connection with the Offering and the Concurrent Private
Placement, the Company paid to the Agent and any other syndicate
members a cash commission of $385,200, which was equal to 6.0% of the
gross proceeds from the Offering, and issued an aggregate of
1,242,581 broker warrants, equal to 6.0% of the number of Units
sold pursuant to the Offering, subject to a reduction to 3.0% cash
commission and 3.0% broker warrants in respect of all Units sold
under the Concurrent Private Placement. Each broker warrant is
exercisable for one Unit at the Offering Price for a period of 24
months following the date hereof.
Each Unit consists of one common share in the capital of the
Company (each, a "Common Share") and one-half of one Common
Share purchase warrant (each whole warrant, a "Warrant").
Each Warrant entitles the holder to purchase one Common Share at an
exercise price of $0.44 for 24 months
following the date hereof.
Use of Proceeds
The net proceeds of the sale of the Units will be used to
develop the Company's direct lithium extraction technology to
improve operating efficiencies; to continue the scale-up of
operations at its field unit in the Delaware Basin in Texas; and for general working capital and
corporate purposes.
Other Details
The securities offered have not been, and will not be,
registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities
Act"), or any U.S. state securities laws and may not be offered
or sold in the United States
absent registration or an available exemption from the registration
requirement of the U.S. Securities Act and applicable U.S. state
securities laws. This press release shall not constitute an offer
to sell or the solicitation of an offer to buy, nor shall there be
any sale of these securities, in any jurisdiction in which such
offer, solicitation or sale would be unlawful.
About Volt
Volt is a lithium development and technology company aiming to
be one of North America's first
commercial producers of lithium carbonates and lithium hydroxide
from oilfield brine. Our strategy is to generate value for
shareholders by leveraging management's hydrocarbon experience and
existing infrastructure to extract lithium deposits from existing
wells, thereby reducing capital costs, lowering risks and
supporting the world's clean energy transition. With four
differentiating pillars, and a proprietary Direct Lithium
Extraction ("DLE") technology and process, Volt's innovative
approach to development is focused on allowing the highest lithium
recoveries with lowest costs, positioning us for future
commercialization. We are committed to operating efficiently and
with transparency across all areas of the business staying sharply
focused on creating long-term, sustainable shareholder value.
Investors and/or other interested parties may sign up for updates
about the Company's continued progress on its website:
https://voltlithium.com/.
Forward-Looking Statements
This news release includes certain "forward-looking statements"
and "forward-looking information" within the meaning of applicable
Canadian securities laws. When used in this news release, the words
"anticipate", "believe", "estimate", "expect", "target", "plan",
"forecast", "may", "would", "could", "schedule" and similar words
or expressions, identify forward-looking statements or information.
Statements, other than statements of historical fact, may
constitute forward looking information and include, without
limitation, statements about the Offering and the Concurrent
Private Placement; the receipt of regulatory approvals for the
Offering and the Concurrent Private Placement; completion of
further tranches of the Concurrent Private Placement; the use of
proceeds from the Offering and the Concurrent Private Placement;
and general business and economic conditions. With respect to the
forward-looking information contained in this news release, the
Company has made numerous assumptions. While the Company considers
these assumptions to be reasonable, these assumptions are
inherently subject to significant uncertainties and contingencies
and may prove to be incorrect.
Forward-looking statements or information are necessarily based
upon a number of estimates and assumptions that, while considered
reasonable, are subject to known and unknown risks, uncertainties,
and other factors which may cause the actual results and future
events to differ materially from those expressed or implied by such
forward-looking statements. Such factors include, but are not
limited to: the Company's ability to close additional tranches of
the Concurrent Private Placement; the Company's ability to access
sufficient capital from internal and external sources, and/or
inability to access sufficient capital on favourable terms; and the
delay or failure to receive regulatory or other approvals,
including the final approval of the TSXV, for the Offering and the
Concurrent Private Placement. The intended use of the proceeds of
the Offering and the Concurrent Private Placement by the Company
might change if the board of directors of the Company determines
that it would be in the best interests of the Company. Many of
these risks and uncertainties and additional risk factors generally
applicable to the Company are described in the Company's annual
information form for the year ended June 30,
2024 and its (final) short form base shelf prospectus dated
July 20, 2023, which are available
under the Company's profile at www.sedarplus.ca.
All forward-looking information herein is qualified in its
entirety by this cautionary statement, and the Company disclaims
any obligation to revise or update any such forward-looking
information or to publicly announce the result of any revisions to
any of the forward-looking information contained herein to reflect
future results, events or developments, except as required by
law.
Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this news release.
SOURCE Volt Lithium Corp.