Lithium Americas completes reorganization, enters subscription agreement with GM

Lithium Americas (LAC), now Lithium Argentina (LAAC) and a new Lithium Americas Corp. jointly announced the completion of the reorganization of Lithium Americas into two independent publicly traded companies, implemented by way of statutory plan of arrangement. As of close of trading on Tuesday, October 3, common shares of Lithium Americas have concluded regular-way trading on the Toronto Stock Exchange and New York Stock Exchange under the symbol (LAC), and Lithium Argentina common shares and Lithium Americas common shares have concluded trading on a “when-issued” basis on the NYSE. At the start of trading on Wednesday, October 4, Lithium Argentina Shares and Lithium Americas shares will commence trading on the TSX and NYSE on a regular-way basis under the ticker symbols (LAAC) and (LAC), respectively. Upon completion of the separation, General Motors (GM) executed a second tranche subscription agreement (pursuant to which GM will, subject to the fulfillment of certain conditions precedent, purchase $329.85M in Lithium Americas shares. GM also executed an investor rights agreement with Lithium Americas and GM’s offtake agreement with the company was assigned to Lithium Americas. The second tranche alternative exercise warrants previously issued to GM by the company and the second tranche subscription agreement between GM and the company are no longer effective in accordance with the terms of those agreements. GM is the largest shareholder of both Lithium Americas and Lithium Argentina with approximately 9.4% of the shares of each company.