LITHIUM EXPLORATION GROUP, INC. (OTCMKTS:LEXG) Files An 8-K Entry into a Material Definitive AgreementITEM 1.01
Effective August 11, 2017, Lithium Exploration Group, Inc. (“we”, “us”, “our”, the “Company”) entered into a Debt Settlement Agreement with each Blue Citi, LLC and Concord Holding Group, LLC. As at August 11, 2017 the Company was indebted to Blue Citi and Concord in the aggregate principal amounts of $2,419,206.95 and $1,670,450.91, respectively (exclusive of accrued interest and penalties), to various convertible promissory notes issued to Blue Citi and Concord between March, 2014 and June, 2017. to the Debt Settlement Agreements, each Blue Citi and Concord has agreed to indefinitely forbear from enforcing its rights to the promissory notes. In consideration, we have issued to each Blue Citi and Concord warrants to purchase up to $400,000 in shares of our common stock ($800,000 in the aggregate), with 50% of the warrants exercisable at $0.0025 per share, and 50% exercisable at $0.0035 per share. The warrants are exercisable until August 11, 2022 and may also be exercised on a cashless basis. In the event that the closing price of our common stock falls to $0.0005 or less for a period of 3 days during the warrant exercise period, the exercise price of the $0.0025 per share warrants shall adjust to 300% of the lowest trading price during such 3 day period, and the exercise price of the $0.0035 warrants will adjust to 400% of the lowest trading during the 3 day period. As additional consideration for the issuance of securities to Blue Citi and Concord, promissory notes held by them that were convertible into our common stock at 50% discount to market price will instead be subject to a 25% discount to market price.
We issued the above described promissory notes to Concord Holding Group, LLC and Blue Citi, LLC in reliance on Rule 506 of Regulation D of the Securities Act of 1933, as amended, on the basis that each Concord and BlueCiti represented to our company that they are an “accredited investor” as such term is defined in Rule 501(a) of Regulation D.
| Item 9.01 | Financial Statements and Exhibits |
Lithium Exploration Group, Inc. ExhibitEX-10.1 2 exhibit10-1.htm EXHIBIT 10.1 Lithium Exploration Group,…To view the full exhibit click here
About LITHIUM EXPLORATION GROUP, INC. (OTCMKTS:LEXG)
Lithium Exploration Group, Inc. is an exploration-stage company. The Company is engaged in the acquisition, exploration and development of resource properties. It is focused on the acquisition and development of assets in Alberta, Canada. Its Ultrasonic Technology assists in separating suspended solids from brine water. The technology is based around a transportable ultra-sound reactor. It has applications in the oil and gas, and mining industries. The Ultrasonic Generator (single base unit) can desalinate water at a rate of over 25 to 35 cubic meters per hour. The two discharge streams are distilled water and marketable minerals (flow rates will vary depending on the salinity level of the input stream). The Ultrasonic Generator also has the ability to upgrade crude oil. A single Ultrasonic Generator can upgrade crude oil into petroleum products. The Ultrasonic Generator’s by-products are clean water (or steam) and minerals. As of June 30, 2016, it did not generate any revenue.
