Standard Lithium is a zero-revenue mining company that uplisted to the NYSE in July 2021 with a fantastic-sounding story of being a first mover in direct-lithium-extraction (DLE), a technology that aims to revolutionize lithium mining.
Standards CEO Robert Mintak has been involved with at least 9 publicly traded companies. On average, shares of these companies have fallen ~97%. Of the 9 companies, 5 have been delisted, several have faced regulatory scrutiny, none operate profitably, and at least 8 used paid stock promotion.
Robert Mintaks role immediately prior to Standard Lithium was as CEO of Pure Energy Minerals, another lithium company that, like Standard Lithium, touted proprietary DLE technology. Pure Energy used extensive stock promotion but failed to commercialize DLE. Its stock crashed ~98%, with executives moving on to Standard Lithium.
Standard Lithiums CEO, COO, Chairman, and VP of Exploration all came from Pure Energy Minerals. We show that Standards executives and board also have ties to companies whose stocks spiked on the back of paid stock promotion before ultimately plummeting.
Mintak previously worked at a 3-person stock promotion firm based out of a Regus rental office. His partner at the firm is currently facing a B.C. Securities Commission investigation into allegations of undisclosed stock promotion at a different failed lithium mining company.
Standard Lithium appears to us to be a regurgitation of Mintaks prior company, Pure Energy Minerals, using the same Vancouver stock playbook as Mintaks numerous other failed ventures.
Standard Lithium has used a vast network of 15+ stock promotion outfits. Since going public, the company has spent over C$5 million on advertising and investor relations compared to about C$1.7 million on R&D. In fiscal 2021, its R&D budget dropped to zero.
Around the time of the Standard Lithiums reverse merger to go public in 2016, it executed 2 opaque land deals resulting in almost 21 million shares (worth ~$152 million today) going to unnamed beneficiaries.
Both land deals appear to have been undisclosed related party transactions. The first was with a newly formed entity based at the same address as Standards merger partner. The former President of Standards merger partner, associated with the deal, was later charged by the SEC over allegations of helping insiders secretly dump large quantities of stock in at least 45 companies through the use of opaque entities.
The second land deal was with a newly formed entity incorporated by the law firm of a then-Standard Lithium director. The now-former director was later suspended from practicing law for 2 months for misappropriating client funds and is reportedly subject to a broad B.C. Law Society investigation into entities and individuals who were apparently involved in market manipulations.
Robert Mintaks prior company, Pure Energy Minerals, also executed a questionable land option deal through the same firm that vended the questionable land option deal to Standard Lithium.
Standard claims its proprietary LiSTR technology differentiates it from other lithium hopefuls. LiSTR is based on three patent applications it purchased in 2018 from an apparent one-man engineering shop. Two of the applications have already been rejected as unpatentable by the USPTO.
Standards flagship project has been delayed by nearly 18 months with key partner Lanxess recently admitting that Standards extraction technology has still not demonstrated proof of concept. Lanxess says it has no timeline for development and is no longer mentioning Standard Lithium on its earnings calls.
Even now, the pilot plant appears to be operating at a fraction of its boilerplate capacity, according to data we reviewed through FOIA. Standards technology solution seems to be struggling out of the gate.
Another Standard partner and shareholder, TETRA Technologies, has sold ~90% of its stock.
A subsidiary of Koch Industries, which starting last year has been aggressively investing in SPACs, PIPEs, and ESG-oriented growth equity investments recently stepped in as a partner with a $100 million investment. We think Koch missed red flags and failed in its due diligence in its haste to deploy capital.
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