International Battery Metals completes $5 million private placement

Published 06/08/2025, 14:18
International Battery Metals completes $5 million private placement

VANCOUVER/PLANO - International Battery Metals Ltd. (TSXV:IBAT) (OTCQB:IBATF), currently valued at $6.72 million according to InvestingPro data, has completed its previously announced private placement financing with Encompass Capital Advisors LLC, according to a press release statement issued Wednesday.

The company issued approximately 25.8 million units at a price of about US$0.19 per unit, raising gross proceeds of US$5 million. Each unit consists of one common share and one purchase warrant, with each warrant allowing the holder to acquire an additional common share at C$0.355 until August 5, 2028.

Proceeds from the offering will fund preparations for the company’s modular direct lithium extraction plant and general corporate purposes. The securities issued are subject to a four-month statutory hold period under Canadian securities laws.

The company also received approval from the TSXV for previously announced amendments to certain warrants issued in earlier private placements with Encompass and EV Metals. These amendments extend expiration dates of various warrant series to August 5, 2028, and add restrictions preventing Encompass from becoming a control person through warrant exercise.

The participation by Encompass in the offering and the warrant amendments constitute "related party transactions" under Canadian securities regulations. The company is utilizing exemptions from formal valuation and minority shareholder approval requirements, as the fair market value involved is less than 25% of the company’s market capitalization.

International Battery Metals focuses on direct lithium extraction technology using proprietary extraction media housed in patented extraction towers within modular, transportable platforms. The company’s technology aims to extract lithium chloride from groundwater salt brine deposits while returning water to subsurface aquifers. According to InvestingPro, the company maintains a Fair financial health rating, with additional insights and detailed financial metrics available to subscribers.

In other recent news, International Battery Metals Ltd. has appointed Michael Rutledge as its Chief Financial Officer. Rutledge had been serving as the interim CFO since March 6, 2025. He brings extensive experience in corporate finance and SEC reporting to the role. His background includes overseeing strategic growth initiatives such as initial public offerings (IPOs) and mergers and acquisitions. CEO Joseph Mills expressed confidence in Rutledge’s leadership abilities and his commitment to advancing the company’s strategic goals. This appointment is part of the company’s efforts to deploy large-scale commercial Direct Lithium Extraction (DLE) technology. The leadership change aims to bolster the company’s strategic initiatives in the lithium extraction sector.

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