TORONTO, Feb. 22, 2017 /CNW/ - Enirgi Group Corporation ("Enirgi Group") is pleased to announce that on February 22, 2017 it acquired 15,407,025 common shares (each, a "Common Share") and 2,590,673 warrants to purchase one Common Share (each, an "LSC Warrant" and collectively with the Common Shares, the "Securities") of LSC Lithium Corporation ("LSC"). LSC has its head office located at 1 Adelaide Street East, Suite 3001 Toronto, Ontario M5C 2V9 Canada. The business of LSC will be to focus on the exploration, discovery and development of lithium mineral properties in Argentina.
On February 22, 2017, a wholly owned subsidiary of LSC amalgamated with LSC Lithium Inc. ("LSC Lithium") by way of a "three-cornered amalgamation" pursuant to the provisions of the Business Corporations Act (British Columbia) (the "Amalgamation"). Pursuant to the Amalgamation, (i) each outstanding common share of LSC Lithium was exchanged for Common Shares on a one-for-one basis, and (ii) each outstanding warrant of LSC Lithium was exchanged for LSC Warrants on a one-for-one basis on the same terms and conditions as the warrants of LSC Lithium. Enirgi Group received 15,407,025 Common Shares and 2,590,673 LSC Warrants.
Pursuant to a put-call agreement dated November 14, 2016, as amended (the "Put-Call Agreement"), Enirgi Group has the right to convert the principal amount of US$5,000,000 in outstanding debt into 5,181,347 Common Shares.
Pursuant to a side letter agreement dated December 12, 2016, as amended (the "Side Letter Agreement"), Enirgi Group has the one-time right, to be exercised at the time LSC exercises its option to purchase all of the issued shares of LitheA Inc., to subscribe for such number of Common Shares such that, after such subscription, its pro rata interest in LSC shall not exceed 20%, as calculated pursuant to the Side Letter Agreement.
Enirgi Group has acquired ownership of 15,407,025 Common Shares and 2,590,673 LSC Warrants representing approximately 18.19% of the presently issued and outstanding Common Shares and 14.38% of the presently issued and outstanding LSC Warrants. Immediately prior to the acquisition, Enirgi Group owned no Common Shares or LSC Warrants but owned 15,407,025 common shares and 2,590,673 warrants in the capital of LSC Lithium. Assuming the conversion of all debt under the Put-Call Agreement, and exercise of the full amount allowable under the Side Letter Agreement, Enirgi Group will hold 20% of the issued and outstanding Common Shares and 14.38% of the presently issued and outstanding LSC Warrants.
Enirgi Group has acquired the Securities for investment purposes, and may acquire further Securities or dispose of its holdings of Securities, both as investment conditions warrant.
LSC is listed on the TSX Venture Exchange under the symbol "LSC".
Enirgi Group is a privately held multinational conglomerate located at 1 Adelaide St. East, Toronto, Ontario.
For further information, including a copy of the early warning report required under applicable Canadian securities laws to be filed by Enirgi Group as a result of the transaction referred to in this press release, please contact Jessica Helm at (416) 365-2783.
ABOUT ENIRGI GROUP
Enirgi Group is a privately held multinational conglomerate with six unique divisions that own and operate a portfolio of high-quality assets and operations located around the world. Enirgi Group's Chemicals Division is advancing the development of Enirgi Group's lithium project located in the province of Salta, Argentina. Enirgi Group is focused on developing innovative technologies to sustainably progress a number of development projects around the globe with the goal of becoming a leading low-cost, high quality producer of specialty chemicals and energy storage solutions.
Enirgi Group is wholly-owned by Sentient Group. The Sentient Group Limited is an independent private equity investment firm specializing in the global resources industry with over $2.7 billion of assets under management in metal, mineral and energy assets across the globe.
SOURCE Enirgi Group Corporation
For further information: Enirgi Group Corporation, Jessica Helm, VP Corporate Communications, 1 Adelaide Street East, Suite 3001, Toronto, Ontario, Canada M5C 2V9, P | + 1 416 365 2783 E | [email protected] W | enirgi.com