Electra Battery Materials Corporation (TSX-V:ELBM, NASDAQ:ELBM) said that due to significant investor demand, it has increased the brokered portion of its previously-announced private placement financing from $10 million to $15 million by selling up to 13,636,364 company units at a price of $1.10 per unit.
The company said the balance of the financing will be completed on a non-brokered private placement basis, which will be placed with holders of its senior secured convertible notes, to raise gross proceeds of $5 million on the same terms as the brokered portion.
Electra noted it intends to use the net proceeds of the offering to advance its black mass recycling strategy, its cobalt refinery, for working capital to retire existing payables and general corporate purposes.
Each unit of the financing will consist of one company common share plus one common share purchase warrant, with each warrant entitling the holder to purchase one Electra Battery Materials common share, at a price of $1.74, at any time on or before the date that is 24 months after the closing date.
As well, the company has granted to the agents an option, exercisable up to 48 hours before the closing date, to sell up to an additional 1,363,636 Electra Battery Materials units at the issue price for further gross proceeds of up to $1.5 million.
At the closing date, the company will pay the agents a cash commission equal to 6% of the gross proceeds of the brokered portion of the private placement and will issue to the agents a number of non-transferable warrants equal to 6% of the number of units sold under the brokered portion of the financing, with each broker warrant entitling the holder to acquire one company common share at a price of $1.10.
The offering is scheduled to close during the week of August 7, 2023.
Electra Battery Materials is a processor of low-carbon, ethically-sourced battery materials.
Contact Sean at sean@proactiveinvestors.com