- Edison Lithium (OTCQB:EDDYF) said that it has entered into an arrangement agreement with its wholly-owned subsidiary Edison Cobalt Corp (SpinCo), pursuant to which, among other things, a distribution of the common shares of SpinCo will take place with the result that the shareholders of the company will also become shareholders of SpinCo.
- An aggregate of approximately 18,553,916 common shares of SpinCo will be distributed to shareholders of Edison on the basis of one SpinCo Share for every one common share of Edison held as at the distribution date.
- There will be no change in Edison shareholders’ holdings in the company as a result of the Arrangement.
- If the Arrangement is completed, shareholders will own shares in both companies, Edison and SpinCo.
- Upon completion of the Arrangement, SpinCo intends to undertake a private placement financing in order to raise gross proceeds of up to $1.5M at a price of $0.05 per security.
- Source: Press Release
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