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Rock Tech Lithium Inc (2)
Symbol RCK
Shares Issued 62,449,811
Close 2021-12-30 C$ 6.13
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Rock Tech closes $39.6M (U.S.) tranche one of placement

2021-12-31 02:12 ET - News Release

Mr. Dirk Harbecke reports

ROCK TECH LITHIUM ANNOUNCES CLOSING OF FIRST TRANCHE OF PRIVATE PLACEMENT

Rock Tech Lithium Inc. has closed the first tranche of its previously announced brokered offering of units of Rock Tech, on a private placement basis, to certain U.S. and international investors at a price of $4.20 (U.S.) per unit (or approximately $5.38 (Canadian)) (1). In connection with the closing, the company issued an aggregate of 9,430,476 units for aggregate gross proceeds of approximately $39.6-million (U.S.) (or approximately $50.7-million (Canadian)) (1).

Each unit consists of one common share in the capital of Rock Tech and one common share purchase warrant of Rock Tech. Each warrant entitles the holder thereof to purchase one common share at an exercise price of $6.77 per warrant share until June 30, 2024, subject to and in accordance with the terms and conditions of the certificate evidencing such warrant, including acceleration and adjustment in certain circumstances. The company anticipates closing the approximately $1.4-million (U.S.) remaining under the offering under one or more additional tranches in the near future.

Offering details

Rock Tech intends to use the net proceeds of the offering to finance the construction of the company's proposed high-grade lithium hydroxide converter and refinery facility in Guben, Germany, to finance the continued exploration and development of the company's Georgia Lake lithium project in Ontario, Canada, and for general corporate purposes. See the company's press release dated Dec. 20, 2021, for additional details regarding the anticipated use of the proceeds of the offering, including the allocation thereof.

The unit shares and the warrants are subject to four-month hold periods in accordance with applicable Canadian securities laws and the rules of the TSX Venture Exchange, which expire on May 1, 2021, as will any warrant shares issued on exercise of warrants prior to the expiry of such hold periods.

Evercore Group LLC acted as the exclusive placement agent for the offering, outside of Canada, with only investors outside of Canada eligible to participate, on a reasonable effort basis, and will receive compensation of $1.0-million (U.S.) in connection with its services relating to the offering.

The unit shares and warrant shares have been conditionally accepted for listing on the TSX Venture Exchange, which is subject to the final acceptance of the TSX-V.

A material change report will be filed in connection with the offering fewer than 21 days before closing, which the company deems reasonable in the circumstances, as the details of the offering were not confirmed until shortly prior to closing and the company wished to close the first tranche of the offering on an expedited basis.

See the company's press releases dated Dec. 20, 2021, and Dec. 23, 2021, for additional details regarding the offering.

About Rock Tech Lithium Inc.

Rock Tech Lithium is a cleantech company with operations in Canada and Germany that aims to supply the automotive industry with high-quality lithium hydroxide made in Germany. As early as 2024, the company intends to commission Europe's first lithium converter with a nameplate production capacity of 24,000 tonnes per year. This is equivalent to the volume needed to equip around 500,000 electric cars with lithium-ion batteries.

The company has set itself the goal of creating the world's first closed loop for lithium, thus closing the raw material gap on the road to clean mobility. Rock Tech owns the Georgia Lake project in Ontario, Canada, and, as early as 2030, around 50 per cent of the raw materials used are expected to come from the recycling of batteries.

(1) Based on the Canadian-dollar/U.S.-dollar exchange of $1.2804 as of Dec. 29, 2021.

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