Standard Lithium (TSXV: SLI) has bagged perhaps one of the most well known major conglomerates as an investor. The company this morning announced a direct private placement, wherein Koch Strategic Platforms, a subsidiary of Koch Investments Group, will take a significant stake in the firm.
The arrangement will see Koch investment a total of US$100 million, or C$127.1 million via a financing. Shares under the offering are to be sold at a price of $9.43, with a total of 13.5 million shares to be issued, with no warrant attached to the deal.
In addition to the investment, the two parties are said to be working together to support the strategic development of Standard Lithium’s tech as well as its project. Strategic arrangements are said to potentially include working with Koch Engineered Solutions, as well as Koch Minerals & Trading.
Proceeds will be used for the advancement of the firms commercial project proposed at the Lanxess facility, the development of the South West Arkansas Lithium Project, the development and commercialization of lithium extraction and processing technologies, which is to be done in conjunction with Koch, and for the strategic expansion of its projects.
The announcement this morning also hinted at potential supply agreements for raw lithium with Koch, as well as working towards commercialization of certain technology developed by Standard.
Standard Lithium last traded at $11.09 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.