Highlights
- Samsung SDI to invest US$18.5 million and acquire approximately 15.6 million shares of Canada Nickel, becomes an 8.7% shareholder
- Samsung SDI granted the right to purchase a 10% equity interest in the Crawford project for US$100.5 million upon a final construction decision
- Samsung SDI will be granted certain offtake rights to the Crawford project’s nickel-cobalt products subject to the completion of the 10% equity investment in the Crawford project
Canada Nickel Company Inc. (TSXV: CNC) (OTCQX: CNIKF) announced that the Company has entered today into a Subscription Agreement with Samsung SDI Co., Ltd. (“Samsung SDI”) to make a US$18.5 million investment in Canada Nickel at a price of C$1.57 per Common Share. Upon closing of the private placement contemplated in the Subscription Agreement, Samsung SDI will own approximately 15.6 million shares of the common shares of Canada Nickel, representing approximately 8.7% of the Company’s issued and outstanding shares on a non-diluted basis.
Samsung SDI is a manufacturer of rechargeable batteries for the IT industry, automobiles, and energy storage systems (“ESS”), as well as cutting-edge materials used to produce semiconductors and displays. Samsung SDI’s executive managers and staff members focus efforts to develop the next generation’s growth drivers in order to secure Samsung SDI’s place as a creative leader in the energy and materials industry.
Subscription Agreement and Investor Rights Agreement
The Subscription Agreement and the Investor Rights Agreement contain certain customary terms and conditions. Samsung SDI will have a pro rata right in any future issuance of Common Shares or any securities that are or may become convertible, exchangeable or exercisable into Common Shares to maintain its shareholding as long as it holds 7.5% or more of the issued and outstanding Common Shares of the Company.
Project Investment and Offtake Rights
At closing of the private placement, Canada Nickel will grant to Samsung the right to purchase a 10% equity interest in the Crawford project for US$100.5 million, exercisable upon a final construction decision. By exercising this right, Samsung SDI will have the right to 10% of the nickel-cobalt production from the Crawford project over the life of mine and the right to an additional 20% of Crawford’s nickel-cobalt production for 15 years extendable by mutual agreement. The offtake rights will be based on mutually agreed terms.
The closing of the private placement and related agreements is subject to customary closing conditions including the approval of the TSX Venture Exchange and is targeted to close on or about January 31, 2024.
Advisors
Cutfield Freeman, Deutsche Bank, Harp Capital, and Scotiabank acted as financial advisors to Canada Nickel.
