Electra Battery Materials Corporation (TSX-V:ELBM, OTCQX:ELBMF) said that in preparation for a potential listing on Nasdaq, it will consolidate its outstanding common share capital on the basis of one post-consolidation share for every eighteen pre-consolidation shares.
"The decision to list on the Nasdaq will provide Electra with greater visibility through a leading capital market trading platform that is suited for growth-oriented companies like ours," said CEO Trent Mell in a statement. "With the commissioning of Phase 1 of our Battery Materials Park expected in December, increased exposure to the largest market in the world coincides with first cash flow. Electra is uniquely positioned to provide a reliable, domestic and low carbon supply of refined battery grade materials for lithium-ion batteries, starting with cobalt at the end of 2022, recycled battery material in 2023 and battery grade nickel thereafter."
The consolidation was previously approved by shareholders at the annual general and special meeting held on December 2, 2021.
READ: Electra Battery Materials says it remains on budget and schedule with battery grade cobalt refinery
Highlights include:
- Uplisting from OTC to Nasdaq provides growth-oriented companies greater exposure to largest capital market in the world.
- The resulting smaller share count and higher share price is more palatable to U.S. institutional investors. The revised capital structure and resulting higher share price may provide increased ability for U.S. institutional investors to become shareholders of Electra.
- Target date of April 11 for share consolidation and the company hopes to complete the Nasdaq listing by the end of April.
Subject to the approval of the TSX Venture Exchange on or about April 11, 2022, the common shares of the company will commence trading on a post-consolidation basis under the existing ticker symbols.
Currently, the company has 562,414,189 common shares issued and outstanding. When the consolidation is completed, the company is expected to have approximately 31,245,232 common shares issued and outstanding. The exercise price and number of common shares issuable upon the exercise of the company's outstanding options, warrants and convertible notes will also be proportionally adjusted upon completion of the consolidation.
"In conjunction with the uplisting, the company is required to complete a share consolidation to meet the minimum price threshold for a Nasdaq listing. The resulting smaller share count and higher share price is more palatable to US institutional investors, which will be important for our future growth plans," the company said.
The company noted that completion of a listing is subject to regulatory approvals and the satisfaction of applicable listing requirements. If a listing is completed, the company contemplates that the common shares of the company would continue to trade in Canada on the TSX Venture Exchange.
Contact the author at jon.hopkins@proactiveinvestors.com