Lepidico Ltd (ASX: $LPD) Renounceable Entitlements Offer Announcement

Lepidico Ltd (ASX: $LPD) has announced a pro-rata Renounceable Entitlements Offer to raise up to $5.7 million through the issuance of fully paid ordinary shares in the capital of the Company. The offer, priced at 0.3 cents per share, will be on the basis of one (1) new share for every four (4) existing shares held at the record date of 10 April 2024. Additionally, shareholders will receive a 1 for 2 free attaching option with every two new shares. The offer is set to commence trading from 9 April 2024, and eligible directors intend to participate in it.

Executive Commentary on Renounceable Entitlements Offer

The funds raised from the Entitlements Offer will be used to complete the arrangement of financing for the integrated Phase 1 Project, including lender due diligence and securing a strategic partner. This will transition Phase 1 into construction and position it as an early mover for the new lithium price cycle. Negotiations for a strategic partner for the Phase 1 Project are ongoing under confidentiality with both public sector corporations and Abu Dhabi state organizations. Once the business structure is agreed with preferred partner(s), it is planned to be shared with lenders, including the U.S. Government's Development Finance Corporation (DFC), which should allow debt finance due diligence to resume and be concluded.

Summary of Renounceable Entitlements Offer and Outlook

Lepidico's Renounceable Entitlements Offer aims to raise up to $5.7 million, with the funds intended to complete the financing for the integrated Phase 1 Project and for business development activities. The company's near term strategic imperatives include securing a strategic partner for the Phase 1 Project and collaborating on the identification and development of potential new large scale lithium mica deposits. The offer price of 0.3 cents per new share represents a 25% discount to the previous closing price and a 44% discount to the 30-day volume weighted average price of the company's shares. With the ongoing negotiations for a strategic partner and the increasing demand for battery materials, particularly lithium chemicals, Lepidico is positioning itself to capitalize on the predicted unprecedented demand growth for battery materials over the next decade.