Q2 Metals Announces Repricing of Warrants

Rhea-AI Summary

Q2 Metals announced a repricing of 12,908,333 outstanding common share purchase warrants from $1.25 to $0.60. This amendment awaits approval from the TSX Venture Exchange. These warrants were originally issued on February 23, 2023, as part of a private placement. All other terms, including the expiry date of February 23, 2025, remain unchanged.

Positive

• Repricing of warrants to a lower exercise price can increase the likelihood of warrant holders converting their warrants into common shares, potentially enhancing liquidity.
• Maintaining the same expiry date for the warrants provides a clear timeline for investors.

Negative

• Lowering the exercise price from $1.25 to $0.60 might indicate the company's efforts to attract more investment due to current market undervaluation.
• Potential dilution of existing shares if a significant number of warrants are exercised.

Vancouver, British Columbia--(Newsfile Corp. - May 24, 2024) - Q2 Metals Corp. (TSXV: QTWO) (OTCQB: QUEXF) (FSE: 458) ("Q2" or the "Company") announces that subject to acceptance by the TSX Venture Exchange (the "TSXV"), the Company intends to amend the exercise price of an aggregate of 12,908,333 outstanding common share purchase warrants of the Company that were issued as part of the Company's private placement that closed on February 23, 2023 (the "Warrants").

The Warrants had an original exercise price of $1.25 and the Company intends to amend the exercise price to $0.60 following receipt of TSXV acceptance. All other terms of the Warrants remain the same, including the expiry date of February 23, 2025.

About Q2 Metals Corp.

Q2 Metals is a Canadian mineral exploration company focused on unlocking its portfolio of lithium projects in the Eeyou Istchee James Bay region of Quebec, Canada, that includes its 100-per-cent-owned Mia lithium property.

The Company's exploration advancement at its 8,668-hectare flagship Mia lithium property is focused on the more than 10-kilometre-long Mia trend which is host to both the Mia 1 and Mia 2 lithium occurrences and 11 other mineralized zones along trend.

In addition to the Mia lithium property, the Company expects to add the Cisco lithium property to its property portfolio once the property transaction closes. The Cisco lithium property is located approximately 150 km north of Matagami, Que., and comprises 222 mineral claims and is 11,374 ha in size. The property has district-scale potential with an already identified mineralized zone and a discovery drill result of 115.4 metres of 1.40 per cent lithium oxide (hole CS-23-05), cumulatively in five separate pegmatites.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Alicia Milne
President & CEO
Alicia@Q2metals.com

Jason McBride
Corporate Communications
Jason@Q2metals.com

Telephone: 1 (800) 482-7560
E-mail: info@Q2metals.com

Follow the Company: Twitter, LinkedIn, Facebook, and Instagram

Forward-Looking Statements

This news release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian legislation. Forward-looking statements are typically identified by words such as: "believes", "expects", "anticipates", "intends", "estimates", "plans", "may", "should", "would", "will", "potential", "scheduled" or variations of such words and phrases and similar expressions, which, by their nature, refer to future events or results that may, could, would, might or will occur or be taken or achieved. Accordingly, all statements in this news release that are not purely historical are forward-looking statements and include statements regarding beliefs, plans, expectations and orientations regarding the future including, without limitation, any statements or plans regard the geological prospects of the Company's properties and the future exploration endeavors of the Company. Although the Company 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. Forward-looking statements are based on a number of material factors and assumptions.

Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in such forward-looking statements. The forward-looking statements in this news release speak only as of the date of this news release or as of the date specified in such statement. Forward-looking statements in this news release include amending the exercise price of the Warrants, receiving TSX Venture Exchange acceptance of the repricing of the Warrants, the addition of the Cisco lithium property once the property transaction closes, the Company's objectives, goals or future plans, statements, exploration results, potential mineralization, the estimation of mineral resources, exploration and mine development plans, timing of the commencement of operations and estimates of market conditions. Factors that could cause actual results to differ materially from those in forward-looking statements include failure to obtain necessary approvals, variations in ore grade or recovery rates, changes in project parameters as plans continue to be refined, unsuccessful exploration results, changes in project parameters as plans continue to be refined, results of future resource estimates, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, risks associated with regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, uninsured risks, delays in receiving government approvals, unanticipated environmental impacts on operations and costs to remedy same. Readers are cautioned that mineral exploration and development of mines is an inherently risky business and accordingly, the actual events may differ materially from those projected in the forward-looking statements. Additional risk factors are discussed in the section entitled "Risk Factors" in the Company's Management Discussion and Analysis for its recently completed fiscal period, which is available under Company's SEDAR profile at www.sedarplus.ca.

Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update this forward-looking information except as otherwise required by applicable law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/210577

FAQ

What is the new exercise price for Q2 Metals Corp's warrants?

The new exercise price for Q2 Metals Corp's warrants is $0.60.

When were the warrants originally issued by Q2 Metals Corp?

The warrants were originally issued on February 23, 2023.

What is the expiry date for Q2 Metals Corp's repriced warrants?

The expiry date for the repriced warrants is February 23, 2025.

What was the original exercise price of Q2 Metals Corp's warrants?

The original exercise price was $1.25.

What approval is required for the repricing of Q2 Metals Corp's warrants?

The repricing requires acceptance from the TSX Venture Exchange.