Non-Brokered Private Financing Announcement by International Battery Metals Ltd
In a significant development, International Battery Metals Ltd. (IBAT) has announced a non-brokered private placement financing on July 21, 2025. The company will issue US$5 million in units to Encompass Capital Advisors LLC, with each unit consisting of one common share and one common share purchase warrant.
The offering, priced at approximately US$0.19406 per unit, includes 25,765,258 units. Each warrant issued will be exercisable at C$0.355 for a period of three years. Encompass also has the right to purchase an additional US$2 million in units by December 31, 2025.
The proceeds from the offering will be used to fund the preparation of IBAT's modular direct lithium extraction plant and for general corporate purposes. Notably, the company has extended the expiration dates for existing warrants held by Encompass and EV Metals from prior private placements.
This financing follows IBAT's successful uplisting to the OTCQB Venture Market effective July 8, 2025, under the ticker symbol "IBATF" after meeting OTCQB listing requirements.
In connection with the related party transactions, IBAT is relying on exemptions from formal valuation and minority shareholder approval requirements. The financing is subject to the approval of the TSXV and is expected to close on or around August 8, 2025.
It is important to note that the Offering and the Warrant Amendments have not been registered under the Securities Act of 1933, as amended. Additionally, the securities issued under the financing are subject to a statutory hold period of four months and one day from the date of issuance under Canadian Securities laws.
Each warrant entitles the holder to acquire one common share at an exercise price equal to the market price per warrant share. The fair market value of the Offering and the Warrant Amendments involving related parties is not more than 25% of IBAT's market capitalization.
The amendments to the registration rights agreements with Encompass and EV Metals VI LLC were made in connection with the Offering. The related party transactions were unanimously approved by the non-interested directors of IBAT.
[1] IBAT Uplists to OTCQB Venture Market
[2] IBAT Announces Uplisting to OTCQB Venture Market
[1] After the successful uplisting to the OTCQB Venture Market on July 8, 2025, IBAT has now announced a venture in personal-finance and business expansion, with a non-brokered private placement financing of US$5 million led by Encompass Capital Advisors LLC.
[2] As part of its post-uplisting strategy, IBAT is venturing into investing with a private placement financing, raising US$5 million to fund its business operations, particularly the preparation of its modular direct lithium extraction plant, and some general corporate purposes.
