Electra Battery Materials Corporation (TSX-V:ELBM, OTCQX:FTSSF) said it has established an at-the-market (ATM) equity program that will allow it to issue up to $20 million of common shares from its treasury to the public from time to time, at the company's discretion.
The company noted that a growing number of public companies have at-the-market equity programs in place as it provides flexibility to sell equity during opportune market windows and at a lower commission than conventional equity financing.
Electra Battery Materials said it intends to use the net proceeds from any sales of common shares under the ATM Program, if any, for growth initiatives relating to its battery materials complex, for Iron Creek exploration activities and for general corporate purposes.
READ: Electra Battery Materials signs five-year cobalt tolling contract and amends five-year feed purchase agreement with Glencore
Sales of common shares, if any, under the ATM program are anticipated to be made in transactions that are deemed to be 'at-the-market distributions'. Since the common shares will be distributed at trading prices prevailing at the time of the sale, prices may vary between purchasers and during the period of distribution.
The volume and timing of distributions under the ATM Program, if any, will be determined at the company's sole discretion. The ATM Program will be effective until the earlier of the issuance and sale of all of the common shares issuable under the program and December 26, 2022, unless terminated prior to such date by the company or its agent.
The company also announced that effective from the market open on Friday, January 14, 2022, the trading symbol for its common shares on the OTCQX in the US will change to ELBMF from FTSSF. The change is being made to better align with the company's recent name change and trading symbol on the TSX Venture Exchange.
Electra Battery Materials is building North America's only fully integrated, localized and environmentally sustainable battery materials park. Leveraging the company's own mining assets and business partners, the Electra Battery Materials Park will host cobalt and nickel sulfate production plants, a large-scale lithium-ion battery recycling facility, and battery precursor materials production, which will serve both North American and global customers.
The company also owns the advanced exploration-stage Iron Creek cobalt-copper project in Idaho, USA. Electra Battery Materials is an integral part of the North American battery supply chain, providing low-carbon, sustainable and traceable raw materials for the region's fast-growing electric vehicle industry.
Contact the author at jon.hopkins@proactiveinvestors.com