- Lithium explorer Morella Corporation (1MC) officially completes a $7.5 million private placement and tells investors it is in a “strong financial position”
- It’s a major turnaround for the business which, less than two years ago, entered sudden receivership following a failed debt restructuring plan
- Today, Morella has approved an incentive package to reward the management team that helped keep the embattled company afloat and re-list it on the ASX
- Managing Director James Brown says the company has several “exciting” projects in WA and Nevada, US, which are now fully funded through to late 2023
- Shares in Morella Corporation were trading 3.85 per cent lower at 2.5 cents at 11:25 am AEST
Lithium explorer Morella Corporation (1MC) has officially completed a $7.5 million private placement and told investors it was in a “strong financial position”.
The news likely brings with it a sigh of relief for long-term shareholders of the company who, less than two years ago, were left uncertain about Morella’s future when the company entered sudden receivership following a failed debt restructuring plan.
Morella has since re-named its business, re-listed on the ASX and re-entered the lithium market with the help of a savvy earn-in arrangement with big-cap Sayona Mining (SYA).
Morella today said it was on track for “significant” in-ground works across its project portfolio over the 2023 financial year.
With the completion of the $7.5 million capital raise and a further US$1.1 million (A$1.6 million) from Lithium Royalty Corp (LRC) in return for 1.25 per cent royalties on the Mt Edon and Tabba Tabba operations, Morella has approved an incentive package to issue up to 256 million performance rights to directors and executive management.
Managing Director James Brown said each of the recipients of the performance rights had played a key role in the turnaround of the business over the past two years.
“Morella is in a significantly better position today than it was after the appointment of the administrators in late 2020,” Mr Brown said.
“This would not be possible without the support from the board and management who have worked tirelessly to achieve the restructure of the company and being requoted on the official list of the ASX.”
He said the company had several “exciting” projects in Western Australia and Nevada, USA, which were now fully funded through to late 2023.
Under the incentive program, Morella plans to issue just over 111 million performance rights to non-directors and other key management personnel. This issue will not be subject to shareholder approval.
The company then plans to issue over 147 million rights to directors, subject to shareholder approval and vested for six months post-approval.
Mr Brown is set to receive roughly 85.5 million performance rights, with non-executive directors Allan Buckler, Beng Teik Kuan and Dennis O’Neil to receive roughly 25.5 million each.
Meanwhile, Morella will also issue up to 14.1 million shares to Lithium Corporation under an earn-in agreement between the two businesses and based on specific milestones at the Fish Lake Valley and Big Smoky projects in Nevada.
Shares in Morella Corporation were trading 3.85 per cent lower at 2.5 cents at 11:25 am AEST.