CleanTech Lithium secures £2.1m in loan note funding ahead of planned ASX listing
CleanTech Lithium PLC () has secured commitments from a number of investors, including existing shareholders, to raise gross proceeds of approximately A$4m, or approximately £2.1m, through the issue of loan notes.
In addition, CleanTech has terminated the £1m in convertible loan notes which were announced on 22 April 2024.
The new loan notes also carry an entitlement to five-year warrants. Each A$ 0.9126 or 48p of loan notes subscribed for will carry an entitlement to one warrant exercisable at either A$0.456 or 24p.
The funds raised through the issue of the loan notes will provide CTL with immediate liquidity and will enable the company to maintain its current activities and work programmes whilst it prepares for the planned dual-listing on the Australian Securities Exchange.
"The Board considered it prudent to bring in the necessary funds now to provide for our working capital as we move forwards towards the intended ASX dual-listing,” said Steve Kesler, CTL’s chairman.
“We are grateful to the loan note holders for responding to our request for a short-term facility which is undertaken on what the board considers to be in line with reasonable terms for a loan facility of this type. This loan is intended to be a short-term bridging facility to be repaid from the proceeds of the next capital raise, which as previously announced, the company intends to conduct in connection with its dual-listing on the ASX.”
View from VOX
Recent marketing in Australia appears to have gone well, and the company should be able to proceed without complications with its Australian listing. In this context, given the amount of progress being made on the ground in Chile, and the pace of it, putting short-term finance in place makes a lot of sense. The terms are not onerous either, at least in the short-term. The notes carry no coupon, and are unsecured for the first three months of their duration. Only after that period does security become necessary, and things should have moved along well enough in Chile by then. Further strength in the lithium price would help too, of course, but CleanTech’s trailblazing production methods and the quality of its assets also provide plenty of room for manoeuvre.
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