Electra Battery Materials Corporation (TSX-V:ELBM, NASDAQ:ELBM) has announced a private placement for gross proceeds of up to $10 million to advance its black mass recycling strategy and cobalt refinery.
The company said in a statement that it has entered into an agreement with Red Cloud Securities as lead agent and sole bookrunner on behalf of a syndicate of agents for the sale of up to 9,090,909 units of the company at a price of $1.10 per unit.
Each unit will be comprised of a share of the company and a share purchase warrant entitling the holder to purchase a share at a price of $1.74 at any time on or before 24 months after the closing date.
The company said it has granted the agents an option, exercisable up to 48 hours before the closing date, to sell up to an additional 1,363,636 units at the issue price for additional proceeds up to $1.5 million.
It noted that the offering is part of its previously announced $20 million financing package that includes a strategic investment commitment by Three Fires Group. It is intended to satisfy one of the outstanding conditions of the strategic investment and is being conducted on the same terms.
Additional proceeds will be used for working capital to retire its payables, and general corporate purposes, the company said.
The offering is expected to close on or around July 27, 2023.
Electra Battery Materials is a processor of low-carbon, ethically-sourced battery materials.
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