Cypress Development acquisition

Jul 28, 2021

2021-07-27 16:11 ET – Acquisition

The TSX Venture Exchange has accepted for expedited filing a share purchase agreement dated July 5, 2021, between Cypress Development Corp., 2845028 Ontario Inc., Craig Brown and Chemionex Inc. (the sellers). Chemionex has developed a proprietary direct lithium extraction process (the LIONEX process) and Chemionex have transferred to 2845028 an equipment capable of utilizing the LIONEX process (the pilot plant equipment) and granted 2845028 a perpetual, royalty-free, non-exclusive licence to use the LIONEX process and the company may acquire 100 per cent of the issued and outstanding shares of the company.

Under the terms of the agreement, aggregate $1.32-million purchase price of the acquisition will be satisfied via cash consideration of $100,000, cash escrow consideration of $250,000 and issuance of one million common shares at a deemed price of 97 cents which are to be held in escrow. The deemed price per share is subject to a minimum floor price of 78 cents per common share, being the discounted market price.

The escrow cash shall be release to the sellers upon delivering the pilot plant equipment and the escrow shares shall be release to the sellers within a 12-month period upon completion and installation of the pilot plant equipment.

For more information, refer to the company’s news releases dated July 6, 2021.

https://www.cypressdevelopmentcorp.com/