Full Circle Lithium Increases Its Initial Private Placement Financing Due to High Demand

Full Circle Lithium Expands Financing Opportunity

Full Circle Lithium Corp. (FCL), a prominent U.S. manufacturer of lithium-ion battery fire extinguishing products, has recently completed the first tranche of its private placement financing. This comes as a response to robust demand from investors, leading the company to increase the size of the offering from 12.5 million units to a substantial 20 million units, with total gross proceeds estimated at up to $8 million.

The initial tranche saw the issuance of 8,570,000 units priced at C$0.40 each, generating approximately C$3,428,000. The anticipated closing of the second tranche is set for on or before July 31, 2026. Each unit consists of one common share and half a warrant, enabling the holder to purchase an additional common share at C$0.70 within 18 months of issuance. This warrant arrangement includes provisions that allow acceleration if the company’s shares consistently trade at or above C$1.20 for ten consecutive days.

The funds raised from this offering are earmarked for several strategic initiatives. Primarily, Full Circle Lithium aims to expand its production capacity, boost inventory levels, and enhance sales and marketing efforts for its innovative FCL-X™ lithium-ion battery fire suppression products. These steps are crucial for the company's growth trajectory, especially in a market where demand for safe lithium battery solutions is rapidly increasing.

Carlos Vicens, CEO of Full Circle Lithium, expressed gratitude for the confidence shown by both existing shareholders and new investors. He noted, “The response to this financing has been exceptionally encouraging and reflects growing confidence in our strategy, our expanding commercial opportunities, and the increasing market demand for FCL-X™.” Vicens highlighted the importance of strong support as the company continues to execute its growth plans effectively.

In addition to the aforementioned financing benefits, the initial tranche involved payments of around $17,500 in cash fees and the issuance of finder warrants to certain affiliated parties. Insiders of Full Circle Lithium subscribed for a total of 1,457,500 units in this offering. The issuance to insiders is categorized as a related party transaction, adhering to the exemption provisions set out in Multilateral Instrument 61-101, which allows them to participate without requiring formal valuation or minority shareholder approval as long as these transactions remain under 25% of the company's market capitalization.

All securities issued during the first tranche are subject to a holding period of four months and one day from issuance, as per the securities laws and TSX Venture Exchange policies. The securities have not been registered under the U.S. Securities Act of 1933 and cannot be offered or sold within the United States without proper exemption from the registration requirement.

Full Circle Lithium’s flagship innovation, the FCL-X™, is a non-hazardous, water-based fire-extinguishing agent specifically formulated to address the increasing risks associated with lithium-ion battery fires. Positioned at the forefront of safety solutions in the lithium battery sector, Full Circle Lithium remains committed to providing effective, environmentally friendly fire mitigation technologies powered by a talented technical team.

Looking ahead, the company anticipates significant advancements in its marketing and sales strategies concerning FCL-X™ through various partnerships and distribution agreements. As the company works towards increasing its production capabilities and expanding its market presence, Full Circle Lithium is poised to make strides in ensuring battery safety amid the growing adoption of lithium-ion technologies across multiple sectors.

For further inquiries, please contact:
Carlos Vicens, CEO
Email: [email protected]
Phone: +1.416.977.3832

This news release may contain forward-looking statements related to Full Circle Lithium’s future performance, which involves inherent risks and uncertainties. Stakeholders are encouraged to conduct their own analysis before making investment decisions.