Li-Metal clarifies financial position after $19.5 m raise

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Li-Metal Corp. [LIM-CSE-5Z0] has released a correction to a December, 24, 2021, news release which said the company has raised $19.5 million from the exercise of warrants. Li-Metal is a Canadian company that is developing lithium metal anodes and lithium metal production technologies. It said proceeds will be used to continue development of its lithium technologies as it works towards full-scale commercial production.

Li-Metal is moving to meet the expected surge in demand for high-performance anodes as electrification continues to gain momentum in the global electric vehicle sector.

In its initial news release, Li-Metal said its cash equivalent position was approximately $38 million. However, in an update released on December 27, 2021, the company corrected that statement, saying its cash and equivalents position is actually $28 million.

“This correction does not change any other information reported in the initial news release,” the company said.

On Tuesday, Li-Metal shares eased 0.92% or 10 cents to $10.80. The shares are currently trading in a 52-week range of $15.01 and $10.83.

The company said it has raised $19.5 million after announcing that its advanced anode material development facility in Markham, Ont., has reached initial operational capability.

The facility houses small-scale deposition equipment that can rapidly produce anode materials for evaluation and testing, which is a key piece of the strategy to develop Li-Metal’s scalable lithium anode technology. “These advanced anode materials will be produced at the facility for evaluation and optimization, followed by initial industrialization at the roll-to-roll anode facility in Rochester, New York.”

“Our advanced anode material development facility will greatly enhance our ability to develop our second and third generation products and to customize them for each of our customer’s specific and unique needs,” said Li-Metals co-founder and CEO Maciej Jastrzebski. “This facility increases our capacity to deliver on our product roadmap and grow our product and IP portfolio.”

He went on to say that the $19.5 million raised from the exercise of warrants further strengthens the company’s balance sheet as it advances a growth strategy focused on expanding lithium anode production capacity and lithium metal output.

“We are pleased that our shareholders continue to demonstrate their confidence and support in our business by fully funding our growth plans for next year and beyond,” Jastrzebski said.

Specifically, the proceeds will be used for the following purposes:

  • To expand engineering and operational teams at Rochester, N.Y., and Markham, Ont. sites to accelerate development and scale-up work.
  • Add analytical tools and facilities at the Markham site to improve accuracy and turn-around time for piloting and development samples.
  • Complete engineering, purchase major equipment and complete build-out of commercial-scale anode production demonstration plant to be built in 2023.

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