Bought deal update
Critical Elements Lithium prospectus offering
2021-12-06 16:29 ET - Prospectus Approved
Critical Elements Lithium Corp. has completed a prospectus offering made pursuant to a short form prospectus dated Nov. 29, 2021, that was filed and accepted by TSX Venture Exchange and filed with and receipted by the Autorite des Marches Financiers and the securities regulatory authorities of the provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador securities commissions pursuant to the provisions of the respective Securities Act.
Offering: The offering consisted of 14,915,000 units at a price of $1.75 per unit. Each unit consists of one common share and one-half common share purchase warrant. Each whole warrant entitles the holder to purchase one additional common share at an exercise price of $2.50 per warrant share for a period of 24 months following the closing of the offering.
Offering price: $1.75 per unit
Warrant exercise price: $2.50 per warrant share at any time prior to 5 p.m. ET on the date that is 24 months following the closing date of the offering
Underwriters: Cantor Fitzgerald Canada Corporation, Stifel Nicolaus Canada Inc., Paradigm Capital Inc., Beacon Securities Ltd. and Red Cloud Securities Inc.
Underwriters' commission: The underwriters received cash commission equal to 6 per cent of the gross proceeds realized from the offering (including any gross proceeds raised on exercise of the overallotment option (as defined below)). The underwriters were also granted a number of broker warrants equal to 6 per cent of the aggregate number of units sold under the offering (including the overallotment option). Each broker warrant entitles the holder thereof to acquire one unit at the offering price for a period of 24 months following the closing date of the offering. A reduced commission of 3 per cent in cash is payable in respect of units sold to certain purchasers designated by the company on the president's list.
Overallotment option: The underwriters were granted an overallotment option, exercisable for a period of 30 days following the closing date of the offering, to purchase an additional number of units equal to 15 per cent of the number of units sold pursuant to the offering.
For further information, please refer to the company's short form prospectus dated Nov. 29, 2021
The exchange has been advised that a total of 17,152,250 units, including 2,237,250 units pursuant to the exercise of the overallotment option, have been issued at a price of $1.75 per unit under the offering for aggregate gross proceeds of $30,016,437.50.
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