Lightbridge Corporation announced that it has received $4 million in funding from other investors
January 18, 2018
Share
Lightbridge Corp. (NasdaqCM:LTBR) announced that it has entered into a securities purchase agreement for private placement of 2,666,667 non-voting series B convertible preferred shares at approximately $1.5 per share for gross proceeds of $4,000,000 on January 18, 2018. The transaction will include participation from combination of European family offices, strategic and accredited American and European investors. The preferred shares are non-voting and will be convertible at the option of the holder into the common share of the company on one-for-one basis. The preferred shares carry dividend rate of fixed 7% per year and will be paid in-kind. The warrants to purchase 666,664 shares of the company’s common stock will have an exercise price of $1.875 per share of the underlying common stock and expire six months following issuance. The Company may, at its option, redeem any unconverted Preferred Stock after August 2, 2019. The company has the option of forcing the conversion of the preferred stock if the trading price for the company’s common stock is more than $5.4902 before August 2, 2019, or if the trading price is more than $8.2353 at any time. The company may also redeem the preferred stock after August 2, 2019. The preferred shares are also redeemable following the third anniversary from the date of issuance. The completion of the transaction is subject to certain closing conditions. The company expected to close a transaction on or about January 23, 2018, subject to the satisfaction of customary closing conditions. The company shall pay fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this agreement and shall also pay all stamp taxes and other taxes and duties levied in connection with the delivery of the securities.
Lightbridge Corporation is focused on developing advanced nuclear fuel technology. The Company is developing Lightbridge Fuel, a proprietary nuclear fuel technology for existing light water reactors and pressurized heavy water reactors, which is expected to significantly enhance reactor safety, economics, and proliferation resistance. It also develops new nuclear power plants, large and small, and enhances proliferation resistance of spent nuclear fuel while supplying clean energy to the electric grid. Its target market segments include water-cooled commercial power reactors, such as pressurized water reactors (PWRs), boiling-water reactors (BWRs), water-moderated energetic reactors (VVERs), Canada Deuterium Uranium (CANDU) heavy water reactors, water-cooled small modular reactors (SMRs), as well as water-cooled research reactors. The Company is also developing Lightbridge Fuel for new SMRs to bring the same benefits plus load-following with renewables on a zero-carbon electric grid.