Standard Lithium Ltd. said in a statement that Koch Strategic Platforms has followed through with its $100 million investment in Standard Lithium through a direct private placement.
The direct investment is intended to support the company’s strategic development goals and will be used by Standard Lithium to pursue these goals:
-- Continue to rapidly advance the first commercial lithium-from-brine project proposed for the Lanxess facility in El Dorado.
-- Accelerate and expand the company’s development of the South West Arkansas Lithium Project in Columbia and Lafayette counties.
-- Continue to develop and commercialize modern lithium extraction and processing technologies and work collaboratively with Koch Engineered Solutions businesses.
-- Allow for strategic project expansion.
The company, along with several Koch Industries subsidiaries, is also exploring opportunities to work collaboratively in several key areas. These potentially include working with KES which provides key process equipment, engineering, procurement, and construction services; as well as Koch Minerals & Trading which is involved in the trading of many of the materials that will be required by the company in the future, as well as the lithium products it intends to produce.
KSP was issued 13,480,083 common shares of Standard Lithium at a price of $7.42 per common share for aggregate gross proceeds to Standard Lithium of $100,000,000. All common shares issued to KSP are subject to statutory restrictions on resale until March 31, 2022 in accordance with applicable securities laws. In connection with the Direct Investment, Standard Lithium has granted KSP the right of first offer to participate in future equity financings for a period of 60 months.
MaxEn Capital Advisors, Ltd., Howard L. Margulis, PLLC and related parties provided advisory services to the company in connection with the direct investment. In consideration, they received a one-time fee of $5 million and 336,877 common share purchase warrants. Each warrant is exercisable at a price of $11.09 Canadian dollars until November 30, 2023.