ION Energy launches bought-deal financing scheme to raise $3M to help fund exploration of its lithium brine projects

ION Energy Ltd (CVE:ION) (OTCQB:IONGF) (FRA:5YB) announced Tuesday a bought-deal financing scheme to raise $3 million.

In a statement, the company said it intends to use the net proceeds to fund exploration of its lithium brine projects as well as working capital and general corporate functions.

ION said PI Financial Corp is the lead underwriter on behalf of a syndicate of underwriters who have agreed to purchase six million units of ION at $0.50 each.

READ: ION Energy acquires the Urgakh Naran lithium brine project in Mongolia

Each unit shall consist of one share and one transferrable common share purchase warrant. And each warrant shall be exercisable into one additional share at $0.70 each for 36 months from closing — scheduled for April 13. 

ION intends to use the net proceeds of the offering to fund exploration at the company’s lithium brine projects and for working capital and general corporate purposes.

The company also has granted the underwriters an option to offer up to an additional 15% of the units to cover over-allotments, if any, and for market stabilization purposes. 

The underwriters’ option may be exercised for units, shares, warrants, or any combination thereof and may be exercised in whole or in part by written notice to the company within 30 days following the closing of the offering.

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