Electra Battery Materials Corporation (TSX-V:ELBM, NASDAQ:ELBM) confirmed it has raised US$51 million through a issue of debt securities, covering a refinancing and to support new expansion plans.
The company, in a statement, said it is issuing US$51 million of senior secured convertible notes which carry a 8.99% coupon and matures in February 2028.
It will subsequently repay US$36 million of notes (dated 2026 and carrying 6.95% interest) at par, plus accrued interest.
Remaining proceeds of US$14 million are earmarked for the expansion and recommissioning of the company’s hydrometallurgical cobalt refinery, Electra highlighted.
Spending on the project will include work on buildings, equipment, infrastructure, and other direct costs, plus engineering and project management costs.
The new financing was arranged by broker Cantor Fitzgerald. The new notes convert at 403.214 common shares per US$1,000, at an equivalent conversion price of US$2.48 per share.
On Nasdaq, prior to Tuesday’s open Electra shares are priced at around US$2.26.