First Cobalt (TSX-V:FCC, OTCQX:FTSSF) Corp. has announced the pricing of its previously announced overnight-marketed public offering of common shares for total gross proceeds of approximately C$9.5 million (US$7.5 million) at a price of C$0.25 per common share.
The company also set the conversion price of its previously announced private placement note offering of US$37.5 million principal amount of 6.95% senior secured convertible notes due December 1, 2026.
The initial conversion rate of the notes will be 4,058.2400 shares per US$1,000 - equivalent to an initial conversion price of approximately US$0.25 per share - subject to certain adjustments set forth in the indenture governing the notes. The initial conversion price of the notes represents a premium of approximately 25% over the price of the equity offering.
READ: First Cobalt launches financing earmarked for construction of North American battery materials refinery
The company said it intends to use the aggregate net proceeds of the equity offering and the note offering for capital expenditures associated with the expansion and recommissioning of its refinery, including buildings, equipment, infrastructure, and other direct costs, as well as engineering and project management costs.
The note offering is expected to close on or about September 1, 2021, concurrently with the equity offering. The equity offering is being led by BMO Capital Markets (NYSE:BMO) as sole agent.
The securities offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended, or any applicable US state securities laws, and may not be offered or sold in the United States absent registration or an available exemption from the registration requirement of the US Securities Act and applicable US state securities laws.
First Cobalt plans to commission North America's only cobalt sulfate refinery in 2022. Cobalt sulfate is a critical asset in the development and manufacturing of batteries for electric vehicles.
The company also owns the Iron Creek cobalt-copper project in Idaho, USA as well as several significant cobalt and silver properties in the Canadian Cobalt Camp.
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