VANCOUVER, British Columbia, Sept. 21, 2018 (GLOBE NEWSWIRE) -- Argentina Lithium & Energy Corp. (TSX-V: LIT, FSE: OAY2 (WKN: A0RK7E), OTC: PNXLF), “Argentina Lithium” or the “Company”) announces that the Company will not be proceeding with the option agreement on Arizaro Lithium Project.
The Company has determined that the high risk and potential reward for this project is not suitable for the economics of Argentina Lithium. The Company will focus on its extensive lithium property portfolio within the Lithium Triangle and other high potential locations.
Additionally, Argentina Lithium advises that the Company’s new strategy includes the filing for, and seeking approval of, documents relating to the consolidation of the Company’s issued and outstanding share capital with the TSX Venture Exchange. The intended consolidation will be on a basis of one post-consolidation common shares for every 4 pre-consolidation common shares. This consolidation will reduce the issued and outstanding shares of the Company from 76,287,707 to 19,071,926.
“The Board is restructuring the capital in order to bolster Argentina Lithium’s ability to conclude new project acquisitions at more realistic valuations,” stated Nikolaos Cacos, President & C.E.O. “Further, it strengthens the appeal of the Company to a broader spectrum of investors so that we more effectively grow our Company.”
The Company’s outstanding options and warrants will also be adjusted on the same basis (1 for 4) as the common shares, with proportionate adjustments being made to exercise prices.
No fractional common shares will be issued and no cash will be paid in lieu of fractional post-consolidation common shares. The number of post-consolidation common shares to be received by a shareholder will be rounded down to the nearest whole common share.
A letter of transmittal will be mailed to shareholders advising that: (i) the consolidation has taken effect; and (ii) shareholders should surrender their existing share certificates (representing pre-consolidation common shares) for replacement share certificates (representing post-consolidation common shares). Until surrendered, each existing share certificate will be deemed, for all purposes, to represent the number of common shares to which the holder thereof is entitled as a result of the consolidation.
The Consolidation will benefit the Company by improving its ability to raise additional capital, increasing its appeal to a broader base of potential investors and providing greater flexibility with respect to potential business transactions.
The Company’s articles of incorporation authorize the board of directors to approve certain changes to the Company’s capital structure, including the consolidation. As such, shareholder approval is not required.
The consolidation is subject to approval by the TSX Venture Exchange. The Company does not intend to change its name or its current trading symbol in connection with the proposed share consolidation.
The effective date of the consolidation will be disclosed in a subsequent news release. Notwithstanding the foregoing, the board of directors may, at its discretion, determine not to effect the consolidation.
About Argentina Lithium
Argentina Lithium & Energy Corp is focused on acquiring high quality lithium projects in Argentina, and advancing them towards production in order to meet the growing global demand from the battery sector. The management group has a long history of success in the resource sector of Argentina, and has assembled a first rate team of experts to acquire and advance the best lithium properties in the world renowned “Lithium Triangle”. The Company is a member of the Grosso Group, a resource management group that has pioneered exploration in Argentina since 1993.
ON BEHALF OF THE BOARD
Nikolaos Cacos, President, CEO and Director
For further information, please contact:
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.