U.S. Lithium Corp. (OTC Pink: LITH) is engaged as a lithium exploration and development company. Shares of the lithium miner are rallying 11.55%, through early trading on Monday, September 18, 2017. Over the past month, U.S. Lithium Corp. has seen average daily volume of 399,975 shares. However, volume of 1.06 million shares or dollar volume of $45,845, has already exchanged hands on the day.
Shares of U.S. Lithium Corp. are rallying today, after the company recently announced that it has entered into a securities purchase agreement with Catanga International. Under the terms of the deal, Catanga international receives a $20,000 convertible note, which carries a 10% interest rate and a exercise price of $0.029 per share. Here part of the 8-K filing detailing of the securities purchase agreement:
U.S. Lithium Corp. 8-K Filing:
Item 1.01 Entry into a Material Definitive Agreement
Effective September 13, 2017, U.S. Lithium Corp. (“we”, “us”, “our”, the “company”) entered into a Securities Purchase Agreement withCatanga International S.A. pursuant to which we sold and issued to Catanga International S.A., in consideration of $20,000 in cash, a convertible promissory note in the aggregate principal amount of $20,000. The promissory note, which is payable on September 13, 2018, bears simple interest at a rate of 10% per annum, and is convertible in common shares of our company at the option of the holder, in whole or in part, at the price of $0.029 per share.
We issued the convertible promissory note to Catanga International S.A. in reliance on Rule 506 of Regulation D of the Securities Act of 1933, as amended, on the basis that the purchaser represented to our company that it is an “accredited investor” as such term is defined in Rule 501(a) of Regulation D.
Item 9.01 Financial Statements and Exhibits
10.1 Securities Purchase Agreement dated September 13, 2017 with Catanga International S.A .
10.2 Convertible Promissory Note dated September 13, 2017 issued to Catanga International S.A.
Here is the link to the full 8-K filing: https://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=12280237