Standard Lithium Raises $12 Million in Oversubscribed Private Placement - Seite 2

Each Special Warrant will be deemed exercised on the date (the “Automatic Exercise Date”) that is two (2) business days following the earlier of: (i) the date which is four-months-and-one-day from completion of the private placement; and (ii) the date on which the Company obtains a receipt from the applicable securities regulatory authorities (the “Securities Commissions”) for a final prospectus qualifying distribution of the Conversion Units.  The Company will use its commercially reasonable efforts to obtain a receipt from the Securities Commissions for a final prospectus qualifying the distribution of the Conversion Units, upon exercise of the Special Warrants, on or before 5:00 p.m. (Vancouver time) on March 6, 2020.

The Company intends to use the net proceeds of the private placement to complete commissioning of its LiSTR direct lithium extraction demonstration plant in southern Arkansas, as well as to maintain existing property interests and for general working capital purposes.

Insiders of the Company subscribed for an aggregate of 1,066,667 Special Warrants.  The issuances of Special Warrants to insiders pursuant to the private placement are considered related party transactions within the meaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company relied on exemptions from the formal valuation and minority approval requirements in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of insider participation as, at the time the transaction was agreed to, neither the fair market value of, nor the fair market value of the consideration for, the transaction, insofar as it involves interested parties, exceeded 25% of the Company’s market capitalization.

In connection with completion of the private placement, the Company has paid finders’ fees of $119,268, and issued 452,025 Conversion Warrants, to certain arms-length parties who assisted in introducing subscribers to the Company.  All securities issued in connection with the private placement are subject to a four-month-and-one-day statutory hold period in accordance with applicable securities laws.  The securities issued in connection with the private placement have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States absent registration or an exemption from the registration requirements.  This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States.