TORONTO, July 19,
2024 /CNW/ - Full Circle Lithium Corp. ("FCL" or the
"Company") (TSXV: FCLI) (OTCQB: FCLIF), a USA-based lithium products manufacturer,
announces the close a non-brokered private placement financing (the
"Offering") for aggregate gross proceeds of $1,578,000. It is expected that the proceeds from
the financing will be used for advancing the commercialization and
development of the Company's proprietary lithium battery
fire-fighting agent, FCL-X™ which is uniquely
formulated to neutralize the causes of lithium-ion battery fires,
and for general working capital purposes.
The Offering has resulted in the issuance of 6,312,000 units of
the Company (the "Units") at a price of $0.25 per Unit. Each Unit is comprised of one
common share of the Company and one half of one common share
purchase warrant (each whole warrant, a "Warrant"). Each Warrant
entitles the holder thereof to acquire one additional common share
of the Company (each, a "Warrant Share") at an exercise price of
$0.35 per Warrant Share for a period
of twenty-four months following the closing date of the
Offering.
Certain insiders of the Company (collectively, the "Insiders")
subscribed to the Offering for an aggregate of 1,177,000 Units.
This issuance of Units to the Insiders constitutes a "related party
transaction" as such term is defined under Multilateral Instrument
61-101 – Protection of Minority Security Holders in Special
Transactions ("MI 61-101"). The Company is relying on an exemption
from the formal valuation and minority shareholder approval
requirements provided under MI 61-101 pursuant to section 5.5(a)
and section 5.7(a) of MI 61-101, on the basis that the
participation in the Offering by Insiders does not exceed 25% of
the fair market value of the Company's market capitalization.
In conjunction with the Offering, the Company paid cash finder's
fees of approximately $99,634 and
issued 398,535 finder warrants (the "Finder Warrants") to certain
arm's length finders. Each Finder Warrant will entitle the holder
to purchase one Unit at a price of $0.25 for a period of twenty-four months
following the closing date of the Offering. PowerOne Capital
Markets Limited acted as a finder in connection with a portion of
the Offering.
The securities offered have not been registered under the U.S.
Securities Act of 1933, as amended, and may not be offered or sold
in the United States absent
registration or an applicable exemption from the registration
requirements. 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 the securities in any jurisdiction in which such offer,
solicitation, or sale would be unlawful.
About Full Circle Lithium Corp.
Situated in the epicenter of the largest EV buildout in
North America, FCL's fully
permitted lithium products manufacturing plant in the state of
Georgia, USA combined with a
complement of seasoned lithium experts, makes FCL a unique
processor and manufacturer of lithium products. FCL is focused on
lithium and battery materials reintegration to meet the demand for
crucial battery-grade raw materials, utilizing proprietary
technology and know-how. Following on the Company's mantra of the
"home of lithium science", FCL has also developed an innovative
battery fire-extinguishing agent (FCL-X™) to address
the increasing number of difficult to extinguish and hazardous
lithium battery-based fires. Additional information regarding FCL
is available on SEDAR at www.sedar.com under the Company's profile
and its website www.fullcirclelithium.com
Cautionary Statement
Neither TSX Venture Exchange nor its Regulation Services
Provider accepts responsibility for the adequacy or accuracy of
this release.
This news release contains forward-looking statements within
the meaning of securities legislation in the Canada and which are based on the
expectations, estimates and projections of management of the
parties as of the date of this news release unless otherwise
stated. Forward-looking statements are generally identifiable by
use of the words "expect", "anticipate", "continue", "estimate",
"objective", "ongoing", "may", "will", "project", "should",
"could", "believe", "plans", "intends" or the negative of these
words or other variations on these words or comparable terminology.
More particularly, and without limitation, this news release
contains forward-looking statements and information concerning
expectations on the viability, effectiveness, safety and any
potential production and additional commercialization related to
the battery fire extinguishing agent which is at an early stage of
development and commercialization (which is very difficult for a
start-up venture like FCL as there are much larger and better
capitalized established companies that can potentially quickly
enter the lithium-ion battery fire-fighting market and create
strong competition against FCL), on receiving patent protection for
this fire-extinguishing agent and related inventions and processes,
the ability of FCL, a start-up venture, to successfully
commercialize its fire-extinguishing agent including ramping-up
production of the agent to meet potential demand, continue raising
capital, upgrading and refurbishing its plant, and sourcing
feedstock for its lines of business. Such forward-looking
statements involve known and unknown risks, uncertainties and other
factors which may cause actual results, performance or achievements
to be materially different from any future results, performance or
achievements expressed or implied by the forward-looking
statements. Such factors include, among others, the uncertainties
and risk factors related to the technical elements in a processing
and refining business, loss of key technical and other staff,
lithium price fluctuations, the battery fire-extinguishing agent
functioning as expected to meet safety requirements and
fire-fighting related government regulations and potential client
product specifications, and applicable environmental requirements
and issues – see additional risks described in FCL's public
filings. Actual results, developments and timetables could vary
significantly from the estimates presented. Readers are cautioned
not to put undue reliance on forward-looking statements. FCL
disclaims any intent or obligation to update publicly such
forward-looking statements, whether as a result of new information,
future events or otherwise, unless required by law. Additionally,
FCL undertakes no obligation to comment on analyses, expectations
or statements made by third parties in respect of FCL, its
financial or operating results or its securities.
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SOURCE Full Circle Lithium Corp.