Avalon Advanced Materials enters into a $ 3,000,000 convertible security financing agreement to expedite lithium fast separation.

Toronto, ON – Avalon Advanced Materials Inc. (TSX: AVL and OTCQB: AVLNF) (Avalon or the Company) is pleased to announce that it has entered into a $ 3,000,000 Convertible Security Financing Agreement (the Financing Agreement) with Lind Global Fund II, LP, a legal entity managed by The Lind Partners, a New York-based institutional fund manager (collectively Lind).

The convertible security to be issued under the Financing Agreement will have a term of two years and will accrue a simple interest interest of 10% per annum on the amount financed, which is prepaid and attributed to its face value at issue, leading to person value of $ 3,600,000 (“Nominal Value”). Lind will be entitled to convert the par value amount for a period of 24 months, subject to certain restrictions, at a conversion price equal to 85% of the five-day weighted average price of Avalon ordinary shares prior to the conversion date. The convertible security matures 24 months after completion.

Starting 30 days after the expiration of the 4-month legal holding applicable to the convertible security, Avalon has the right to repurchase the convertible security, provided the holder has the option to convert up to one third of the par value into ordinary shares of Avalon previously back redemption.

The proceeds will be used to accelerate the planned work program for Separation Rapids’ lithium project near Kenora, Ontario, and to meet short-term working capital requirements. The work will include preparation for a feasibility study at both the Separation Rapids and the planned lithium battery refinery in Thunder Bay, Ontario.

In connection with the completion of the Financing Agreement, Lind will receive a closing fee of $ 90,000 and 9,000,000 warrants for the purchase of ordinary shares. Each warrant entitles the holder to purchase one ordinary share of the Company at a price of $ 0.26 per ordinary share for up to 48 months after closing. Under Canadian securities law, securities issued in this private placement will be subject to a retention period of four months and one day after completion.

The company received conditional approval from TSX in connection with this financing. This news release is not an offer for securities for sale in the United States. The securities have not been and will not be listed under the U.S. Securities Act of 1933, as amended (the U.S. Securities Act), and may not be offered or sold in the United States or to individuals from USA (as defined in Regulation S under the US Securities Act) lack of registration or applicable exemption from registration. All currency reported in this issue is in Canadian dollars.

About The Lind Partners

Lind Partners manages institutional funds that are leaders in providing growth capital to small and medium-sized companies publicly traded in the United States, Canada, Australia and the United Kingdom. Lind’s funds make direct investments in the range of $ 1 million to $ 30 million, invest in syndicated capital proposals and selectively buy on the market. Having made more than 100 direct investments totaling more than $ 1 billion worth of transactions, Lind’s funds are flexible and supportive capital partners for the companies it has been investing in since 2011.
For more information, please visit http://www.thelindpartners.com.

About Avalon Advanced Materials Inc.

Avalon Advanced Materials Inc. is a Canadian mineral development company specializing in sustainably produced materials for clean technologies. The company already has four advanced projects providing investors with exposure to lithium, tin and indium, as well as rare earth elements, tantalum, cesium and zirconium. Avalon is currently focusing on developing its Separation Rapids lithium project near Kenora, Ontario, while continuing to develop other projects, including the 100% owned Lilypad Cesium-Tantalum-Lithium project, located near Fort Hope, Ontario. Social responsibility and environmental management are corporate cornerstones.

For questions and feedback, please email Avalon President and CEO Donald Bubar at ir@AvalonAM.com.

This news release contains “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act 1995 and applicable Canadian securities law. Statements for the future include, but are not limited to, statements related to the issuance of convertible securities under the Financing Agreement, how the Company plans to use the net proceeds and that the planned work program includes preparation for a feasibility study in Separation Rapids and for the planned lithium battery refinery. In general, these forward-looking statements can be identified through the use of terminology for the future, such as “potential”, “planned”, “foreseen”, “ongoing”, “expected” or “not expected”, “expected”, “planned”. , “Directed”, “planned” or “believes”, or variations of such words and phrases, or an indication that certain actions, events or results “may”, “may”, “would”, “may” or “will be” or “will not be” taken, achieved or result, “will happen” or “will be achieved”. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause Avalon’s actual results, level of activity, performance or achievements to differ materially from those expressed or implied by such forward-looking statements. The forward-looking statements are based on assumptions that management believes are reasonable at the time such statements are made. Although Avalon has sought to identify important factors that could significantly differentiate actual results from those contained in the forward-looking statements, there may be other factors that cause the results to be inconsistent with expectations, forecasts or projections. Factors that may cause actual results to differ materially from those expected in the forward-looking statements include, but are not limited to, market conditions, and the possibility of cost overruns or unforeseen costs and expenses, as well as the risk factors identified in Company documents up-to-date annual information form, discussion and analysis of the management and other disclosure documents available in the company’s profile at www.SEDAR.com. There can be no guarantee that such statements will be accurate, as actual results and future events may differ materially from those expected in such statements. Such forward-looking statements are provided to assist investors in understanding the Company’s plans and objectives and may not be appropriate for other purposes. Accordingly, readers should not rely unduly on forward-looking statements. Avalon does not undertake to update any forward-looking statements contained herein except in accordance with applicable securities laws.

Avalon enters into $3,000,000 convertible security funding agreement

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