Avalon Advanced Materials Inc. announced that the company has entered into a convertible security funding agreement for the gross proceeds of CAD 15,000,000 on March 18, 2024. The first drawdown on the funding agreement will be for CAD 2,750,000. The transaction is expected to close within the next two weeks.

The convertible security will have a two-year term and will accrue a simple interest rate obligation of 10% per annum. The transaction will include participation from returning investor, Lind Global Fund II LP, a fund managed by, The Lind Partners, LLC. In conjunction with the closing of the first drawdown under the Funding Agreement, Lind will receive a closing fee of CAD 96,250, and 15,800,000 common share purchase warrants.

Each warrant will entitle the investor to purchase one common share of the company at a price of CAD 0.13 per common share until 60 months after closing. Pursuant to Canadian securities laws, the securities issuable under the first drawdown will be subject to a hold period which expires four months and one day after closing. The company has received conditional approval of the TSX in connection with the first drawdown.