Ion Energy Announces Filing of Final Short-Form Prospectus and Updates to Previous Disclosure
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TORONTO, April 07, 2021 (GLOBE NEWSWIRE) -- Ion Energy Ltd. (“ION”, or the “Company”) (TSXV:ION) (OTCQB: IONGF) (FSE: 5YB) is pleased to announce that it has filed a final short-form prospectus (the “Prospectus”) with the securities regulatory authorities in each of the provinces of Canada, other than Québec, in connection with its previously announced “bought deal” public offering (the “Offering”) of units (the “Units”). Pursuant to the offering, a syndicate of underwriters led by PI Financial Corp. and which included Stifel GMP (together, the “Underwriters”), agreed to purchase from the Company 10,000,000 Units at a price of $0.50 per Unit for aggregate gross proceeds of $5,000,000.
Each Unit consists of one common share in the capital of the Company (each, a “Common Share”) and one warrant to purchase one additional Common Share at a price of $0.70 for three years after the closing date of the Offering (each, a “Warrant”). The Company also granted the Underwriters an option (the "Over-Allotment Option"), exercisable in whole or in part at any time, and from time to time, until the date that is 30 days following the closing of the Offering, to offer for sale any combination of additional Units, Common Shares or Warrants in such combination as is equal to up to 15% of the number of Common Shares and warrants issued in the Offering in the aggregate, to cover over-allotments, if any, and for market stabilization purposes.
The Company intends to use the net proceeds of the Offering to fund exploration at the Company’s lithium brine projects and for general working capital purposes.
The Offering is expected to close on or before April 13, 2021. Further information on the Offering is included in the Prospectus, a copy of which is available under the Company’s profile on www.sedar.com.
Prior to filing the Prospectus, the Company filed amended unaudited condensed consolidated interim financial statements for the three and nine months ended September 30, 2020 (the “Amended Financial Statements”), together with corresponding amended management’s discussion and analysis (the “Amended MD&A”). The Amended Financial Statements and the Amended MD&A were amended as a result of management’s and the auditor's review of the financial statements during the course of the Ontario Securities Commission’s review of the Prospectus.