Cypress Development Announces Closing of Bought Deal Offering Including Full Exercise of Over-Allotment Option

Rhea-AI Summary

Cypress Development Corp. has successfully closed its upsized public offering, issuing 15,640,000 Units at C$1.25 each, generating gross proceeds of C$19,550,000. Each Unit consists of one common share and one warrant exercisable at C$1.75 until March 22, 2024. The net proceeds will support the ongoing work at the Clayton Valley Lithium Project in Nevada and general working capital. The offering was underwritten by PI Financial Corp., and the securities are not registered under U.S. law.

Positive

• Successfully raised C$19,550,000 through a public offering.
• Funding will be used for the Clayton Valley Lithium Project, enhancing potential for lithium supply.

Negative

• No information on expected financial impact or performance metrics from the capital raise.

VANCOUVER, British Columbia, March 22, 2021 (GLOBE NEWSWIRE) -- Cypress Development Corp. (TSX-V: CYP) (OTCQB: CYDVF) (Frankfurt: C1Z1) (“Cypress” or “the Company”) is pleased to announce that it has closed its previously announced and upsized “bought deal” public offering of units of the Company (the “Units”) with PI Financial Corp. as the sole underwriter and bookrunner (the “Underwriter”). The Underwriter exercised the over-allotment option in full and as a result the Company issued a total of 15,640,000 Units at a price of C$1.25 per Unit for gross proceeds of C$19,550,000 (the “Offering”). Each Unit consists of one common share (each, a “Common Share”) and one warrant (each, a “Warrant”). Each Warrant shall be exercisable for one common share (each a “Warrant Share”) at an exercise price of C$1.75 until March 22, 2024.

The net proceeds from the Offering are expected to be used by the Company to fund ongoing work on the Company's Clayton Valley Lithium Project in Nevada and for general working capital purposes.

The Units, Common Shares and Warrant Shares have not been, nor will they be, registered under the United States Securities Act of 1933, as amended and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. This news release does not constitute an offer of securities for sale in the United States.

About Cypress Development Corp.

Cypress Development Corp. is a publicly traded exploration company focused on developing the Company's 100%-owned Clayton Valley Lithium Project in Nevada. Exploration and development by Cypress discovered a world-class resource of lithium-bearing claystone adjacent to the Albemarle Silver Peak mine, North America's only lithium brine operation. The size of the resource makes the Clayton Valley Project a premier source that has the potential to impact the supply of lithium for the fast-growing global energy storage battery market.

Clayton Valley Lithium Project, Nevada Claims Map:
cyp_cypress_-_albemarle_properties_map.jpg (1060×706) (cypressdevelopmentcorp.com)

To find out more about Cypress Development Corp. (TSX-V: CYP), visit our website at www.cypressdevelopmentcorp.com.

CYPRESS DEVELOPMENT CORP.

“Dr. Bill Willoughby”

_____________________________
                                        
WILLIAM WILLOUGHBY, PhD., PE
Chief Executive Officer

For further information contact myself or:
Don Myers
Cypress Development Corp.
Director, Corporate Communications
Telephone: 604-639-3851
Toll Free: 800-567-8181
Facsimile: 604-687-3119
Email: info@cypressdevelopmentcorp.com

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.

This release includes certain statements that may be deemed to be "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that management of the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. The Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause actual results to differ materially from those in forward-looking statements, include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see the public filings of the Company at www.sedar.com for further information.

FAQ

What was the amount raised by Cypress Development Corp in its public offering?

Cypress Development Corp raised C$19,550,000 through its public offering.

What is the exercise price and duration for the warrants issued in the offering?

The warrants are exercisable at C$1.75 until March 22, 2024.

What will the net proceeds from the offering be used for?

The net proceeds will fund ongoing work at the Clayton Valley Lithium Project and for general working capital.

Who acted as the underwriter for Cypress Development Corp's offering?

PI Financial Corp. was the sole underwriter and bookrunner for the offering.

Are the securities issued by Cypress Development Corp registered in the U.S.?

No, the Units, Common Shares, and Warrant Shares have not been registered under the U.S. Securities Act.