International Battery Metals Ltd announces private placement financing without the involvement of brokers
International Battery Metals Raises $5 Million for Lithium Extraction Plant
International Battery Metals Ltd (IBAT) has announced a non-brokered private placement financing in July 2025, raising $5 million. The financing was conducted by issuing 25,765,259 units at $0.19406 per unit.
Each unit consists of one common share and one common share purchase warrant. The securities issued under the offering are subject to a statutory hold period of four months and one day from the date of issuance under Canadian Securities laws.
The purpose of this financing was primarily to support the preparation of IBAT's modular direct lithium extraction plant (MDLE Plant) for future operations and general corporate purposes. This strategic funding aims to enhance the company’s operational capabilities in lithium extraction technology, aligning with the growing demand for lithium in renewable energy and battery production sectors.
The financing was completed with Encompass Capital Advisors LLC acting for certain fund entities and managed accounts. The company has entered into amended and restated registration rights agreements with Encompass and EV Metals VI LLC.
The warrants issued are exercisable at C$0.355 per share until August 5, 2028. Encompass Capital Advisors LLC has the right, but not the obligation, to purchase up to US$2 million of additional units. The issue price per unit will be based on the market price of the company’s common shares.
In connection with the related party transactions, a material change report will be filed in connection with the related party transactions less than 21 days in advance of closing. The related party transactions were unanimously approved by the non-interested directors of the Company. The fair market value of the Offering and the Warrant Amendments involving related parties is not more than 25% of the Company's market capitalization. The Company is exempt from formal valuation and minority shareholder approval requirements for the related party transactions.
Concurrently with the Offering, the Company will extend the expiration date of the warrants issued to Encompass and EV Metals. The extension of the warrants' expiration date is subject to the approval of the TSXV. The participation by Encompass in the Offering and the extension of the warrants constitute "related party transactions" for the purposes of Multilateral Instrument 61-101.
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. Each warrant entitles the holder to acquire one common share at an exercise price equal to the market price per warrant share.
The warrants will be valid for three years from the date of issuance. The Company has the right to accelerate the expiration of the warrants if the common shares trade at or above C$0.71 for a period of 20 consecutive trading days.
This financing marks a significant step forward for IBAT, enabling the company to advance its lithium extraction technology and contribute to the growing demand for lithium in renewable energy and battery production sectors.
- The funds raised from the financing by International Battery Metals Ltd will be used not only for the preparation of the MDLE Plant but also for general business purposes, potentially aiding in the advancement of personal-finance management within the company.
- With the rise in renewable energy and battery production sectors, investing in a company like International Battery Metals, which focuses on lithium extraction technology, could prove beneficial for those interested in technology-related, general-news, and perhaps even environmentally-focused business opportunities.
- As technology advances and the demand for lithium grows, paying attention to business developments in the finance sector, such as the funding received by International Battery Metals, may be crucial for those seeking to make informed personal-finance decisions.
