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LU7 Raises $3.64 Million to Advance Closing the Lithium Conversion Gap Strategy

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Lithium Universe Limited (referred to as ‘Lithium Universe’ or the ‘Company,’ ASX: ‘LU7’) is pleased to advise that it has completed a $3,644,333.34 million capital raising to sophisticated investors, at a price of $0.02 for each one fully paid ordinary share (FPS) subscribed.

Highlights

Binding subscription agreements for $3,644,333.34Further development of the Québec Lithium Processing Hub (QLPH) strategyCapital raising in two tranches:Tranche 1 – 95,016,667 shares at $0.02 per share raising $1,900,333.34Tranche 2 – 87,200,000 shares also at $0.02 per share to raise a further $1,744,000.001:2 free attaching listed option and a $0.03 exercise price and expiry in 18 monthsCompany intends to list OptionsCompany to grant 1:2 Option to those who participated in the recent Share Purchase Plan

The proposed capital raising is to be conducted in two tranches, being:

Tranche 1 – 95,016,667 FPS; andTranche 2 – 87,200,000 FPS, to be issued subject to shareholder approval at the Company’s Annual General Meeting, to be held on 14 June 2024 (AGM).

As part of the above capital raising initiative one option will also be issued for every two FPS’s subscribed for, containing an exercise price of $0.03 per option and an expiry date of 18 months (Option). The issue of the Options will be subject to shareholder approval at the Company’s AGM. It is intended that the Options will be listed on the Australian Securities Exchange (ASX), with further details to be provided as soon as they come to hand.

The expected timing for completion of the above capital raising is as follows:

Tranche 1 – 10 May 2024; andTranche 2 – 28 June 2024 (assuming receipt of shareholder approval at the Company’s AGM).

LU7’s Executive Chairman, Iggy Tan, commented, “We are delighted with the outcome of this capital raising in a very difficult market, which demonstrates the strong support by sophisticated investors for our QLPH’s business strategy. I look forward to rewarding all shareholders by the anticipated success from this strategy”.

The capital raising has been led by the Company. However, in conducting the capital raising, the Company has used various brokers. For those brokers who introduced clients to the capital raising, a fee of 6% is to be paid to them.

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