Standard Lithium Ltd., announced that Koch Strategic Platforms (KSP), a subsidiary of Koch Investments Group, has completed its US$100 million investment in Standard Lithium through a direct private placement.
The Direct Investment is intended to support the Company’s strategic development goals and will be used by the Company to pursue the following objectives:
- Continue to rapidly advance the first commercial project proposed for the Lanxess facility;
- Accelerate and expand the Company’s development of the South West Arkansas Lithium Project;
- Continue to develop and commercialise modern lithium extraction and processing technologies and work collaboratively with Koch Engineered Solutions businesses; and,
- Allow for strategic project expansion.
The Company, along with several Koch Industries subsidiaries, is also exploring opportunities to work collaboratively in several key areas.
These potentially include working with KES which provides key process equipment, engineering, procurement, and construction services; as well as Koch Minerals & Trading which is involved in the trading of many of the materials that will be required by the Company in the future, as well as the lithium products it intends to produce.
Terms of the Direct Investment
Under the terms of the Direct Investment, KSP was issued 13,480,083 common shares of Standard Lithium at a price of CDN$9.43 (US$7.42) per Common Share for aggregate gross proceeds to Standard Lithium of CDN$127 million (US$100 million).
All Common Shares issued to KSP are subject to statutory restrictions on resale until March 31, 2022 in accordance with applicable securities laws. In connection with the Direct Investment, Standard Lithium has granted KSP the right of first offer to participate in future equity financings for a period of sixty months.