American Manganese Inc said it has entered into private placement for its common shares and warrants with institutional investors only.
The agreement will raise gross proceeds of approximately C$20 million for American Manganese. AGP/Alliance Global Partners will serve as the exclusive placement agent for the private placement.
As noted in the statement, the company will issue up to 20,000,000 common shares and warrants for the purchase of up to 20,000,000 common shares for a purchase price of C$1.00 per common share and associated warrant.
READ: American Manganese successfully upcycles EV battery black mass into NMC-811 cathode precursor
Each warrant entitles the holder to purchase one common share for C$1.25 per common share for a three-year period.
“The common shares and warrants to be issued under the private placement will be qualified by way of a prospectus supplement under the company's short form base shelf prospectus dated September 16, 2021 which will be filed in the province of British Columbia,” the press release stated.
Additionally, upon closing the agent will receive a cash commission equal to 7% of the aggregate gross proceeds received from the sale of the common shares and warrants. The company will also issue warrants equal to 7% of the number of common shares sold under the private placement to the agent.
These warrants are subject to the same conditions (listed above) as those issued to the institutional investors.
The critical metals company plans to use the net proceeds as working capital and for general corporate purposes. The private placement is expected to close on or about October 4, 2021.
Currently, American Manganese is focused on the upcycling of lithium-ion battery waste into high-value battery cathode materials, using its closed-loop RecycLiCo process.
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