Electra Battery Materials Corporation (TSX-V:ELBM, NASDAQ:ELBM) has closed its previously announced brokered private placement and concurrent non-brokered private placement for total gross proceeds of $21.5 million, the company announced.
The company issued 15 million units at a price of $0.10 each, for proceeds of $16.5 million. That includes the exercise of the full over-allotment option granted to the syndicate of agents, Electra noted.
The balance of the offering was completed on a non-brokered private placement basis in which 4.5 million units were issued for gross proceeds of $5 million under the same terms.
Each unit includes one common share and one share purchase warrant with an exercise price of $1.74 for a period of two years.
“Despite a backdrop of challenging market conditions, our ability to successfully close our financing and receive strong support from investors around the world for our unit offering is a testament to the progress we have made building excellent relationships with key stakeholders in the EV battery supply chain, demonstrating our black mass recycling capabilities, and attracting strategic investors to help advance development of our refinery complex,” CEO Trent Mell said in a statement.
“With a strengthened balance sheet, we expect to build on our momentum in the months ahead as we work towards onshoring of the EV supply chain to North America.”
Electra plans to use the net proceeds to advance its black mass recycling strategy and its cobalt refinery, as well as for working capital to retire existing payables and general corporate purposes.
Electra Battery Materials is a processor of low-carbon, ethically-sourced battery materials.
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