American Salars Lithium Inc. announced an unsecured convertible debenture private placement of up to 3,333,333 convertible debenture units at a price of CAD 0.15 per convertible debenture unit for gross proceeds of CAD 499,999.95 on January 12, 2024. For each principal debenture amount of 15 cents, the company shall also issue one transferrable share purchase warrant. Each warrant entitles the holder to purchase one additional common share at an exercise price of CAD 0.25 per warrant for a period of three years after issuance of the debentures and warrants. The principal amount of the debentures will mature 36 months from the issuance of the debentures. The principal amount of the debentures will accrue interest at 10% per annum, commencing on the issuance date, which interest will be payable (or converted) at the maturity date, or at any time prior to the maturity date, at the option of the debenture holder. The principal amount, and accrued and unpaid interest, shall be convertible at a price of CAD 0.15 per common share, calculated based on the term held until conversion, subject to adjustment. All securities issued and issuable in connection with the private placement offering will be subject to a four-month hold period commencing on the closing date.

On January 15, 2024, the company changed the issue price from CAD 0.15 to CAD 0.175 per convertible debenture unit, the company will now issue 2,857,143 convertible debenture units at an issue price of CAD 0.175 per convertible debenture unit for gross proceeds CAD 500,000.