Avalon Advanced Materials Inc. announced a non-brokered private placement of 109,692,764 common shares at an issue price of CAD 0.091164 per share for the gross proceeds of CAD 10,000,031 and secured convertible debenture for gross proceeds of CAD 3,000,000 for aggregate gross proceeds of CAD 13,000,031 on June 15, 2023. The transaction included participation from new investor, SCR-Sibelco N.V. for 19.9% stake in the company. The secured convertible debenture, providing for two advances to the company of CAD 500,000 on the date hereof and CAD 2,500,000 subject to the satisfaction of certain conditions precedent.

The debenture bears interest at 7.115% per annum and the principal and interest are payable on maturity June 15, 2025, being two years from the date of the debenture. The company also granted to SCR-Sibelco N.V., for so long as SCR-Sibelco N.V. holds not less than 10% of the issued and outstanding common shares on a non-diluted basis. SCR-Sibelco N.V. also agreed to a 12-month standstill and certain resale restrictions placed on its holdings in the company.