Edison Lithium Corp. agreed to Spin-Off Kittson Cobalt Property in Ontario.
Board of Directors of Edison Lithium Corp has unanimously approved the Spin off its Kittson Cobalt Property. The proposed Spin-Out will be subject to the terms of an arrangement agreement between Edison and SpinCo, the approval of shareholders at a meeting of Edison shareholders, the approval of the British Columbia Supreme Court and the approval of the TSX Venture Exchange (the "Exchange"). The Company expects the Spin-Out will increase shareholder value by allowing capital markets to ascribe value to the Kittson Cobalt Property independent of the Company's lithium properties and by providing management focus and concentration. Upon the satisfaction or waiver of the Escrow Release Conditions, the Escrowed Proceeds would be released to SpinCo. Upon receipt thereof, SpinCo is expected to use the Escrowed Proceeds to fund exploration of the Kittson Cobalt Property and for general working capital, including, potential future acquisitions. The Company intends to seek a listing of the SpinCo Shares on the Exchange but no assurance can be provided that such a listing will be obtained. Listing will be subject to SpinCo fulfilling all of the requirements of the Exchange. The particulars of the Spin-Out and related Private Placement are not yet final and shareholders are cautioned that there can be no assurance that the Spin-Out and Private Placement will be completed on the terms described herein or at all.