People seem to easily forget what SYA via SYQ signed up for:
Under the Assignment Agreement and the Governance Agreement, Sayona Québec has agreed to an extensive regime of commitments to pursue the establishment of industrial spodumene conversion facilities in the Province of Québec (the Quebec Content Undertakings). As part of these undertakings, a feasibility study into the development of a spodumene conversion facility will be conducted within three years from the transaction’s closure. In addition, subject to certain conditions, NAL has undertaken to convert its spodumene production into lithium hydroxide or lithium carbonate within Québec from the sixth anniversary until the 10th anniversary of the closure. If these obligations are not achieved, NAL is obligated to redeem a certain portion of IQ’s preferred shares at a price equal to their initial value plus interest at a minimal rate of 5% per annum. Sayona Québec may periodically redeem a certain portion of IQ’s preferred shares, upon meeting various Quebec Content Undertakings, for an aggregate amount of CA$1. Piedmont Lithium and Sayona have agreed to guarantee the obligations of Sayona Québec under the Assignment Agreement and the Share Purchase Agreement. In addition, Sayona Québec will guarantee the obligations of NAL in respect of the Quebec Content Undertakings described above. As part of this guarantee, IQ may elect that any amount payable in connection with such Québec Content Undertakings be paid in Sayona shares, subject to obtaining the necessary approvals from Sayona’s shareholders at the time of the election. Transaction closure is expected to occur during Q3 2021, subject to the satisfaction of certain conditions contemplated in the Share Purchase Agreement and in the Assignment Agreement, including Sayona obtaining any necessary approvals under the ASX Listing Rules and other necessary regulatory approvals (inclusive of any clearances required under the Competition Act (Canada) and Investment Canada Act (Canada)), as well as other customary closing conditions.
SYA Price at posting:
4.1¢ Sentiment: Hold Disclosure: Held
(20min delay)