Non-Brokered Private Financing Announcement by International Battery Metals Limited
**IBAT Secures $5 Million in Private Placement Financing**
International Battery Metals Ltd. (IBAT) has announced a non-brokered private placement financing, aiming to raise US$5 million by issuing units of the company. The proceeds from the financing will be utilised for preparing IBAT's modular direct lithium extraction plant for future operations and general corporate purposes, with the specific use of funds remaining undisclosed in the official announcements.
**Terms of the Offering**
The financing, which is scheduled to close on or around August 8, 2025, is a non-brokered private placement. Each unit consists of one common share and one common share purchase warrant. Each warrant entitles the holder to acquire one additional common share at an exercise price equal to the market price per warrant share for three years. The issue price per unit will be based on the market price of IBAT's common shares on the day before the announcement of the closing.
**Investors Involved**
The sole disclosed investor in this offering is Encompass Capital Advisors LLC, acting for certain fund entities and managed accounts for which it exercises investment discretion. The offering is structured so that any additional investment from Encompass must be on terms at least as favorable as those set out in the initial subscription agreements.
**Related Party Transactions**
The participation by Encompass in the Offering and the Warrant Amendments constitute "related party transactions" under MI 61-101. The fair market value of the Offering and the Warrant Amendments, insofar as it involves related parties, is not more than 25% of the Company's market capitalization.
**Extension of Warrants Expiration Dates**
The extension of warrants expiration dates is subject to the approval of the TSXV. The Company has entered into amended and restated registration rights agreements with Encompass and EV Metals VI, which were amended and restated on May 3, 2024.
**Important Notes**
The securities issued under the financing are subject to a statutory hold period of four months and one day from the date of issuance under Canadian Securities laws. The offer and sale of the units were made in a transaction not involving a public offering and have not been registered under the Securities Act of 1933 or applicable state securities laws. IBAT is relying on exemptions from the formal valuation and minority shareholder approval requirements for the Related Party Transactions.
In summary, IBAT has secured $5 million from Encompass Capital Advisors LLC through a non-brokered private placement of units consisting of common shares and warrants, with warrants exercisable for three years at market price. However, the specific use of proceeds has not been publicly detailed in the available releases. The closing of the financing is expected to occur on or around August 8, 2025, and the extension of warrants issued to Encompass and EV Metals is subject to the approval of the TSXV.
- The financing deal between International Battery Metals Ltd. (IBAT) and Encompass Capital Advisors LLC, a significant player in the field of investing, is expected to aid in the company's business expansion, specifically in preparing its modular direct lithium extraction plant for future operations.
- For those interested in personal-finance and education-and-self-development, this financing deal offers an insight into the world of technology, as IBAT's growth is centered around battery metals, a critical component in modern technology.
- General news related to business and finance might provide updates on the progress of IBAT, as the specific use of funds from the $5 million private placement financing remains undisclosed, leaving room for future announcements and developments.
