First Phosphate said that members of its management team and board of directors have reached an agreement to purchase 50% of the company’s shares currently held by Glen Eagle Resources.
"This agreement allows Glen Eagle to fulfill its need for immediate liquidity and yet for First Phosphate to maintain an orderly market in the trading of its common shares," said First Phosphate chairman of the board Laurence Zeifman.
"I am proud of our board and management team for stepping up swiftly and decisively with our own personal financial resources in favour of a solution that strengthens shareholder value."
Glen Eagle’s incoming CEO Karl Trudeau thanked First Phosphate for working with the company to find an “elegant solution” due to its own internal need for restructuring.
"We see tremendous promise in the business of First Phosphate and plan to do whatever possible to help to support its world-class business and management team,” Trudeau said.
Under the agreement, members of First Phosphate’s management team and board will be acquiring 2.7 million shares in the company scheduled for release from escrow in 2023 and 2024.
Glen Eagle will retain 2.7 million shares scheduled to be released from escrow in 2025 and 2026.
First Phosphate is a mineral development company fully dedicated to extracting and purifying phosphate for the production of cathode active material for the lithium iron phosphate battery industry.
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