Rock Tech Lithium Announces Pricing of Offering of Units – QNT Press Release


VANCOUVER, BC, Aug. 12, 2022 /CNW/ – Rock Tech Lithium Inc. (TSXV:RCK) (OTCQX:RCKTF) (FWB: RJIB) (WKN: A1XF0V) (the “Company” or “Rock Tech”) announces the pricing of its previously announced marketed offering of units of the Company (“Units”). The Company will issue an aggregate of 11,349,743 Units for aggregate gross proceeds of approximately US$31.0 million (approximately C$39.7 million) at a price of C$3.50 per Unit (the “Offering”). Each Unit will be comprised of one common share in the capital of Rock Tech (a “Common Share”) and one-half of one Common Share purchase warrant (each whole Common Share purchase warrant, a “Warrant”). Each Warrant will entitle the holder thereof to acquire one Common Share (a “Warrant Share”) for a period of 36 months from the date of issuance of such Warrant, at an exercise price of C$4.50subject to and in accordance with the terms and conditions of the warrant indenture to be entered into between the Company and Computershare Trust Company of Canadaincluding acceleration and adjustment in certain circumstances.

Rock Tech currently intends to use the net proceeds of the Offering to finance the development of the Company’s proposed high grade lithium hydroxide converter and refinery facility in Guben, Germany (the “Guben Converter”) and to fund the continued exploration and development of the Company’s Georgia Lake lithium project in Ontario, Canada (the “Georgia Lake Project”). The net proceeds from the Offering are expected to provide the Company with sufficient capital to advance its projects, including the Guben Converter and Georgia Lake Project, in line with its proposed business timeline. Additionally, over the last week further strategic, less dilutive financing possibilities have arisen, which could help to strongly accelerate the company’s growth.

The Offering includes a C$30,686,600 underwritten offering (the “Underwritten Offering”) conducted through a syndicate of underwriters (the “Underwriters”) led by TD Securities Inc. and Cantor Fitzgerald Canada Corporation acting as joint book-runners and including Berenberg Capital Markets, LLC as joint lead manager. The Company has granted the Underwriters an option (the “Over-Allotment Option”) to purchase up to an additional 15% of the Underwritten Offering. The Over-Allotment Option will be exercisable, in whole or in part at the discretion of the Underwriters , at any time up to and including 30 days following the closing date of the Offering. The Underwriters can elect to exercise the Over-Allotment Option for Units only, Common Shares only, Warrants only or any combination thereof, to cover over-allotments, if any, and for market stabilization purposes.

In connection with the Underwritten Offering, the Company will also complete a non-brokered private placement of Units for aggregate amount of not less than C$9,037,500 (the “Concurrent Private Placement”), pursuant to subscription agreements to be entered into directly between Rock Tech and purchasers (“Subscription Agreements”), all of whom are expected to be existing shareholders of Rock Tech.

Closing of the each of the Underwritten Offering and the Concurrent Private Placement is expected to occur on August 19, 2022 and is subject to a number of customary…

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