Cypress Development arranges $8.5M bought deal

Feb 9, 2021

2021-02-08 15:41 ET – News Release

Dr. William Willoughby reports

CYPRESS DEVELOPMENT ANNOUNCES C$8.5 MILLION BOUGHT DEAL OFFERING

Cypress Development Corp. has entered into an agreement with PI Financial Corp. as the sole underwriter and bookrunner pursuant to which the underwriter has agreed to purchase, on a bought deal basis pursuant to a short form prospectus, 6.8 million units of the company at a price of $1.25 per unit for gross proceeds of $8.5-million. Each unit shall consist of one common share of the company and one common share purchase warrant. Each warrant shall be exercisable for one common share of the company for a period of 36 months from the closing date (as herein defined) at an exercise price of $1.75.

In addition, the company has granted the underwriter an option, exercisable in whole or in part, for a period of 30 days following the closing date, to purchase up to an additional 15 per cent of the units sold pursuant to the offering, on the same terms as the offering, to cover overallotments and for market stabilization purposes.

The net proceeds from the offering are expected to be used by the company to finance continuing work on the company’s Clayton Valley lithium project in Nevada and for general working capital purposes.

Closing of the offering is expected to take place on or about March 3, 2021, and is subject to certain conditions including, but not limited to the receipt of all applicable regulatory approvals including approval of the TSX Venture Exchange.

The units to be issued under the offering will be offered by way of a short form prospectus to be filed in each of the provinces of Canada, except Quebec. The units may also be offered in the United States to qualified institutional buyers pursuant to exemptions from the registration requirements of the United States Securities Act of 1933 as amended, in a manner that does not require the offering to be registered in the United States, and in certain other jurisdictions in accordance with applicable securities laws.

About Cypress Development Corp.

Cypress Development is a publicly traded exploration company focused on developing the company’s 100-per-cent-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.

https://www.cypressdevelopmentcorp.com/