ION Energy Ltd (CVE:ION) (OTCQB:IONGF) (FRA:5YB) has upsized its previously announced "bought-deal" offering to raise gross proceeds of C$5 million, up from C$3 million.
The company said PI Financial Corp, as the lead underwriter on behalf of a syndicate of underwriters, will now purchase 10 million units, up from 6 million units previously, at an unchanged price of $0.50 each.
ION said it intends to use the net proceeds to fund exploration of its lithium brine projects as well as working capital and general corporate functions.
READ: ION Energy acquires the Urgakh Naran lithium brine project in Mongolia
Each unit will consist of one share and one transferrable common share purchase warrant. Each warrant will be exercisable into one additional share at $0.70 each for 36 months from closing, scheduled for April 13.
The company has also granted the underwriters an option to offer up to an additional 15% of the units to cover over-allotments, if any, and for market stabilization purposes. The underwriters’ option may be exercised for units, shares, warrants, or any combination thereof and may be exercised in whole or in part by written notice to the company within 30 days following the closing of the offering.
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