en.Wedoany.com Reported - Canada's Lion One Metals (TSXV:LIO) has completed the first tranche of a non-brokered private placement, raising total proceeds of C$15.3 million (approximately US$15.64 million) through the issuance of convertible debenture units and equity units.
The company issued 12,500 convertible debenture units at a price of C$1,000 per unit, raising C$12.5 million. Each debenture unit consists of a 10% interest rate, four-year subordinated secured convertible debenture, convertible into common shares at C$0.13 per share, and includes 7,692.3 warrants exercisable at C$0.175 per share for a term of four years.
Additionally, Lion One completed a private placement of 21.4 million units at a price of C$0.13 per unit. Each unit consists of one common share and one common share purchase warrant, exercisable at C$0.175 per share for a term of three years.
The company plans to use the net proceeds from this financing to repay upcoming payments due under its senior secured loan facility with Nebari funds and to remedy ongoing working capital covenant defaults under that facility. Remaining funds will be used for general corporate and working capital purposes.
Lion One expects to complete the second tranche by July 10, involving the remaining C$1.5 million in debenture units as originally announced.
Certain subscribers include company directors and management, and under Multilateral Instrument 61-101, the transaction constitutes a related party transaction, but has been exempted from formal valuation and minority shareholder approval requirements. The securities are subject to a hold period expiring four months and one day from the date of issuance.
The company noted that final completion of the transaction remains subject to final approval from the TSX Venture Exchange.
Additionally, Lion One announced management changes, following the appointment of Ian Berzins as President and Chief Executive Officer on June 16. Tony Young has resumed his role as Chief Financial Officer (CFO), and Zamand Shokri has also returned as Corporate Controller. During the management transition period from May 1 to June 16, Young and Shokri served as Interim CEO and Interim CFO, respectively.
Lion One Metals is a Canadian gold producer focused on the operation and development of its wholly owned Tuvatu alkaline gold project in Fiji.
