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Li3 Energy issues 14.97 million shares to shareholders on Tuesday
Shares were issued as payment for cancellation of certain liabilities
By Susanna Moon
Chicago, April 15 – Li3 Energy, Inc. issued an aggregate of 14,970,060 shares of common stock on April 14 to shareholders who participated in a private placement with the company in April and May of 2011, according to an 8-K filing with the Securities and Exchange Commission.
The shares were issued to the penalty shareholders as consideration for the cancellation of certain liabilities owed by the company to the shareholders. These liabilities were owed by the company to the penalty shareholders due to the company’s failure to register the resale of shares purchased by the penalty shareholders within the time limits set forth in registration rights agreements.
Under the registration rights agreements, the company was required to file a registration statement by June 21, 2011, but did not file the registration statement until July 1, 2011.
In addition, the company was required to cause the registration statement to become effective by Nov. 28, 2011, but the registration statement was not declared effective until March 19, 2012. As a result, monetary penalties were owed against the company in the amount of $518,243 as of March 19, 2012, which was increased to $808,438 by April 2015 due to accrued interest of $290,195.
The board of directors of the company approved the payment of penalties accrued by the company to the penalty shareholders in lieu of cash, in an amount equal to $250,000, amounting to $0.0167 per share.
The company’s stock (OTCBB: LIEG) last closed at $0.011 on April 15.
The lithium mining and energy company is based in Lima, Peru.
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