| Ticker | Status | Jurisdiction | Filing Date | CP Start | CP End | CP Loss | Deadline |
|---|
| Ticker | Case Name | Status | CP Start | CP End | Deadline | Settlement Amt |
|---|
| Ticker | Name | Date | Analyst Firm | Up/Down | Target ($) | Rating Change | Rating Current |
|---|
Electra Battery Materials Corporation (NASDAQ:ELBM, TSXV:ELBM) ("Electra" or the "Company") announces amendments to its previously disclosed recapitalization and restructuring initiative (the "Restructuring"), a key step toward strengthening its balance sheet and completing construction of North America's first battery-grade cobalt sulfate refinery.
The Company and the holders (the "Lenders") of the Company's outstanding secured convertible notes (the "Notes") have agreed to amend the Restructuring such that Electra will now convert approximately US$41.3 million of outstanding Notes, plus accrued and unpaid interest, into approximately 55 million units of the Company ("Units"), to be issued on the same terms as the Company's previously announced brokered private placement offering for gross proceeds of up to US$30 million (the "Offering"). Pursuant to the Restructuring, the Lenders will exchange 60% of the Company's convertible debt for equity, reducing total debt under the Notes to approximately US$27.5 million.
The remaining 40% of the Notes, plus interest, will be exchanged into a new three-year term loan. Under the proposed new loan agreement, the Company has agreed to issue a one-time bonus of 3,822,341 common shares (each a "Common Share") of the Company to the Lenders at a deemed issue price of US$0.90 per Common Share.
The Units to be issued as part of the amendments to the Restructuring are to be issued at a deemed exchange price of US$0.75 and consist of one Common Share and one common share purchase warrant (a "Warrant"). Each Warrant entitles the holder to purchase one additional Common Share at a price of US$1.25 per share for a period of 36 months, commencing 60 days following closing of the Offering.
The Company had previously applied to the TSXV for a waiver in connection with the Restructuring to permit an equitization price of US$0.60 for the Notes, which was below the minimum pricing requirements under TSXV Policy 4.3 – Shares for Debt. The TSXV did not grant the waiver and, as a result, the Restructuring will now proceed at US$0.75 per Unit in compliance with Policy 4.3.
These transactions represent a decisive step toward restoring Electra's financial flexibility and unlocking the full value of its strategically located assets. The Restructuring substantially reduces near-term debt obligations and aligns the Company's capital structure with a sustainable path to production.
Posted In: ELBM
