AVALON ANNOUNCES THE RESULTS OF ITS 2021 ANNUAL AND SPECIAL MEETING OF SHAREHOLDERS

In addition, at the Meeting shareholders appointed Ernst & Young LLP as auditors of the Company, approved updates to the Company's By-Law No.1, approved the Company's Deferred Share Unit Plan and Restricted Share Unit Plan and approved the Company's Share Capital Amendment, which is designed to reduce the number of the Company's very small registered shareholdings.

 

The Share Capital Amendment will be accomplished by amending the Company's articles to reflect a 500:1 consolidation of the Company's common shares, immediately followed by a 1:500 split of the Company's post-consolidated common shares. The Share Capital Amendment will become effective at 12:01 a.m. on Monday, March 15, 2021.

 

Shareholders holding 500 or more common shares in a brokerage account will continue to hold the exact same number of shares after the Share Capital Amendment that they did prior to the Share Capital Amendment. These shareholders do not need to do anything with respect to the Share Capital Amendment.

 

Shareholders holding 500 or more common shares in the form of a physical certificate will continue to hold the exact same number of shares after the Share Capital Amendment that they did prior to the Share Capital Amendment. However, once the Share Capital Amendment is effected, these shareholders will need to follow the instructions in the letter of transmittal that was sent to them in order to exchange their old share certificates for new share certificates.

 

Shareholders holding less than 500 common shares in the form of a physical certificate will be paid cash for their shares upon completion of the Share Capital Amendment. The cash payment will be equal to the number of common shares held immediately prior to the Share Capital Amendment multiplied by the volume weighted average trading price of the common shares on the TSX during the previous five (5) consecutive trading days prior to the effective date of the Share Capital Amendment. The Company will mail a letter of transmittal directly to these shareholders providing instructions on how to exchange their share certificates for the cash payment.

 

Shareholders holding less than 500 common shares in a brokerage account will have the option to be paid a cash payment for their shares, calculated as above, otherwise they will continue to hold the exact same number of shares after the Share Capital Amendment that they did prior to the Share Capital Amendment. These shareholders can contact their broker for their process to exchange their shares for the cash payment, if they so desire.

 

The Toronto Stock Exchange has conditionally approved the Share Capital Amendment.

 

About Avalon Advanced Materials Inc.

 

Avalon Advanced Materials Inc. is a Canadian mineral development company specializing in sustainably-produced materials for clean technology. The Company now has four advanced stage projects, providing investors with exposure to lithium, tin and indium, as well as rare earth elements, tantalum, cesium and zirconium. Avalon is currently focusing on developing its Separation Rapids Lithium Project near Kenora, Ontario while looking at several new project opportunities, including re-activating its 100%-owned Lilypad Cesium-Tantalum Project in northwestern Ontario. Social responsibility and environmental stewardship are corporate cornerstones.

 

For questions and feedback, please email Avalon President and CEO, Donald Bubar, at ir@AvalonAM.com.