First Cobalt (TSX-V:FCC, OTCQX:FTSSF) Corp. said it has completed the sale of additional secured convertible notes, for an aggregate amount of US$7.5 million, as part of the company's recently completed offering of 6.95% senior secured convertible notes due December 1, 2026.
Under the subscription agreements entered into between the company and investors on August 23, 2021, each investor had the right to subscribe for additional notes pro-rata for an aggregate additional principal amount of up to US$7.5 million.
With the exercise of the option, First Cobalt (TSX-V:FCC, OTCQX:FTSSF) said it is adequately financed for the recommissioning and expansion of its hydrometallurgical refinery in Ontario, and on track to becoming North America's only producer of sustainable battery-grade cobalt sulfate by Q4 2022.
READ: First Cobalt granted second key permit for its North American battery materials refinery
The offering of notes was led by Cantor Fitzgerald & Co., as sole placement agent. Cantor Fitzgerald received a placement agent fee equal of 4% of the gross proceeds of the additional notes sold.
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's mission is to be a producer of diversified high-quality and sustainable battery materials for the North American battery supply chain. The company owns a permitted hydrometallurgical refinery in Ontario, Canada, a critical asset in the development and manufacturing of batteries for electric vehicles.
First Cobalt 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.
Contact the author at jon.hopkins@proactiveinvestors.com