Cypress Development Corp (TSX-V:CYP, OTCQB:CYDVF) revealed that it had received $6.94 million from a recent warrant exercise which would bolster the company’s cash position.
The Canadian advanced-stage lithium exploration company said that in the period from October 1 to November 29, 2021, the company received $6.94 million from the exercise of 4.74 million warrants.
The warrants had exercise prices of up to $1.75 and the funds from the warrant exercise are in addition to the $19.8 million cash that the company held on September 30, 2021, said Cypress Development which focuses on developing its Clayton Valley lithium project in the US.
READ: Cypress Development begins testing lithium-bearing claystone from Nevada project at its new pilot plant
The company said it issued 15.64 million warrants with an exercise price of $1.75 as part of its bought deal financing in March 2021. As of November 29, 2021, the company's outstanding warrant position was 12,262,253 warrants of which 11,879,100 are at an exercise price of $1.75 and 383,153 are exercisable at $1.25, said Cypress Development.
"These cash injections significantly increase the company's reported cash position without any dilution to the current shareholding structure," Cypress Development President and CEO Bill Willoughby said in a statement. "With a strong treasury, the company is in excellent position to execute upon its plans for the coming year."
Cypress Development’s flagship Clayton Valley lithium project in Nevada spans over 5,000 acres between Reno and Las Vegas and is home to a large lithium clay deposit. It sits just east of Albemarle’s Silver Peak mine - North America’s only lithium brine operation, which has been in continuous operation since 1966.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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