At the time of this news release today, LEXG has had a trading range of 0.0006 to 0.0009 with the VWAP of $0.00073 on 91,212,877 shares traded. So in today’s PR when the company announced reducing conversion discount by 50% and in consideration of the significant reduction in debt, each fund will receive two new warrants, which will have a conversion mechanism 300% and 400% above today’s market price! So a simple calculation would suggest that the conversion prices are equal to $0.0021 (0.0007 x 300%) and $0.0028 (0.0007 x 400%). What this tells me is that LEXG will need to trade at or above 0.0021 and 0.0028 in order for the debt holders to begin converting their debt into shares. At today’s market price of $0.0007, I think that we are in for a good ride to the upside! I have written about $LEXG in the past being a potential 10 bagger stock investment potential, and I still believe this to be true.
Here is the official PRESS RELEASE:
Lithium Exploration Group Announces 50% Reduction in Conversion Feature of Existing Debt Eliminating More Than Four Billion Shares of Dilution
PHOENIX, August 7, 2017 /PRNewswire via COMTEX/ — PHOENIX, August 7, 2017 /PRNewswire/
Lithium Exploration Group Inc. (USOTC: LEXG) announced today that it has come to terms with two major debt holders to restructure all of their convertible notes, reducing conversion discount by 50%. In consideration of the significant reduction in debt, each fund will receive two new warrants, which will have a conversion mechanism 300% and 400% above today’s market price. The collective view of the company and the debt holders is that Lithium Exploration Group is in a significantly better position than it has been in the past and the heavily dilutive terms of the debt were not sustainable for the company or its shareholders.
“This is exciting news and should show everyone the level of confidence that the debt holders have in the company’s current position,” commented CEO, Alex Walsh. “They have conceded a significant portion of their debt rights in return for warrants that produce a significant incentive to see long-term price appreciation in the LEXG security. This restructuring truly has all parties incentivized in the same direction and should show significant benefit to our existing shareholders for a long time to come.”
About Lithium Exploration Group
Lithium Exploration Group is a US-based exploration and development company focused on the acquisition and development potential of lithium brines and other precious metals that demonstrate high probability for near-term production. Currently the company is focused on testing the Sonic Cavitation Ltd. technology and the acquisition of oil and gas related assets in the US and Canada. Lithium Exploration Group is traded on the OTC Markets under the symbol LEXG.
Safe Harbor Statement
This news release contains “forward-looking statements”. Statements in this press release that are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future testing of the ultrasonic technology.
Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with mineral exploration and difficulties associated with obtaining financing on acceptable terms. We are not in control of lithium prices and these could vary to make development uneconomic. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements.
Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our most recent annual report for our last fiscal year, our quarterly reports, and other periodic reports filed from time-to-time with the Securities and Exchange Commission.
Contact InfoShanon Chilson +1-480-641-4790 firstname.lastname@example.org
SOURCE Lithium Exploration Group Inc.
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