United Lithium Applies to Extend Warrant Expiry Date

Rhea-AI Summary

United Lithium Corp (CSE: ULTH; OTCQX: ULTHF) has applied to the Canadian Securities Exchange to extend the expiry date of 16,666,667 common share purchase warrants from March 6, 2025, to September 6, 2026. The warrants are currently exercisable at $0.50 per share.

These warrants originated from a non-brokered financing completed on March 6, 2023, which initially issued 49,700,000 warrants at $0.25 per share. Following a 3:1 share consolidation on December 27, 2023, the warrant count adjusted to 16,666,667 with an exercise price of $0.75. On March 26, 2024, the exercise price was reduced to $0.50 per share.

The warrant expiration will accelerate to thirty days if the company's closing share price exceeds $0.625 for any ten consecutive trading days on the CSE, with the thirty-day period beginning seven days after this trigger.

Positive

• Warrant extension provides additional 18 months for potential capital raising
• Recent reduction in warrant exercise price from $0.75 to $0.50 increases likelihood of exercise

Negative

• Warrant extension indicates potential challenges in raising capital at current market conditions
• Potential future dilution if all 16.67M warrants are exercised

VANCOUVER, British Columbia, March 03, 2025 (GLOBE NEWSWIRE) -- United Lithium Corp. (“United Lithium” or the “Company”) (CSE: ULTH; OTCQX: ULTHF; FWB: 0UL)  is announcing that it has applied to the Canadian Securities Exchange (“CSE”) to extend the expiry date of 16,666,667 common share purchase warrants (each, a “Warrant”), exercisable at a price of $0.50 per share, that were set to expire on March 6, 2025. The Company proposes to extend the Warrant expiry date from March 6, 2025, to September 6, 2026 (the “Warrant Amendment”), and no other terms are expected to be amended.

A total of 49,700,000 Warrants were originally issued as part of the non-brokered financing completed on March 6, 2023, with an exercise price of $0.25 per share and expiration date of March 6, 2025. On December 27, 2023, the Company completed a consolidation of its issued and outstanding common shares at a ratio of three (3) pre-consolidation common shares to one (1) post-consolidation common share, resulting in 16,666,667 post-consolidation Warrants outstanding, with an adjusted exercise price of $0.75 per share.

On March 26, 2024, the Company announced that upon obtaining the consent from the Warrant holders, it would amend the exercise price of the Warrants, reducing it from $0.75 to $0.50 per share. In accordance with CSE policy, the expiration of the Warrants will be accelerated to thirty days if, for any ten consecutive trading days, the closing price of the common shares of the Company on the CSE is $0.625 or greater (the “Acceleration Trigger”), with such thirty-day period starting seven days after the Acceleration Trigger. All other terms remain unchanged.

The Warrant Amendment is subject to acceptance by the CSE.

On Behalf of The Board of Directors

“Scott Eldridge”
President, Chief Executive Officer and Director
Telephone: +1-604-428-6128
Email: scott@unitedlithium.com

About United Lithium

United Lithium is an exploration & development company energized by the global demand for lithium. The Company is targeting lithium projects in politically safe jurisdictions with advanced infrastructure that allows for rapid and cost-effective exploration, development, and production opportunities.

The Company’s consolidated financial statements and related management’s discussion and analysis are available on the Company’s website at https://unitedlithium.com or under its profile on SEDAR+ at www.sedarplus.ca.

The Canadian Securities Exchange has not approved nor disapproved the contents of this news release and does not accept responsibility for the adequacy or accuracy of this release.

FAQ

What changes are proposed for ULTHF's warrant expiry date?

United Lithium is seeking to extend the expiry date of 16,666,667 warrants from March 6, 2025, to September 6, 2026.

What is the current exercise price for United Lithium's warrants (ULTHF)?

The warrants are currently exercisable at $0.50 per share, reduced from $0.75 following an amendment on March 26, 2024.

How did ULTHF's share consolidation affect its warrants?

The December 27, 2023 3:1 share consolidation adjusted the warrants from 49,700,000 to 16,666,667, with the exercise price changing from $0.25 to $0.75.

What triggers the acceleration clause for ULTHF's warrants?

The warrants will expire in 30 days if United Lithium's shares close at $0.625 or higher for 10 consecutive trading days on the CSE.