Electra Battery Materials Corporation (TSX-V:ELBM, NASDAQ:ELBM) said it has priced its previously announced overnight-marketed public offering, on a best efforts basis, at US$2.35 per unit, which would raise gross proceeds of about US$5.5 million, or approximately C$7.4 million.
The processor of low-carbon, ethically-sourced battery materials said it intends to use the net proceeds of the financing for capital expenditures associated with the expansion and recommissioning of its wholly-owned hydrometallurgical cobalt refinery, including buildings, equipment, infrastructure, and other direct costs, as well as engineering and project management costs.
Each unit will be comprised of one company common share plus one common share purchase warrant, with each warrant entitling the holder to purchase one Electra Battery Materials common share at US$3.10 for 36 months after the closing date of the equity offering.
READ: Electra Battery Materials aims to raise US$8M via public offering
Electra Battery noted that it expects to file a final prospectus supplement in connection with the equity offering by no later than 5:30 pm EST on Wednesday.
The equity offering is expected to close on or about November 15 and is subject to customary closing conditions including the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange and notification to The Nasdaq Stock Market.
Cantor Fitzgerald Canada Corporation is acting as lead agent and sole bookrunner for the offering, the company added.
Electra Battery Materials' proprietary hydrometallurgical process has a low carbon footprint and produces stable non-acid generating tailings, thereby reducing environmental impacts while meeting or exceeding water discharge effluent criteria as stipulated by both federal and provincial regulations.
Electra is a processor of low-carbon, ethically-sourced battery materials. Currently commissioning North America's only cobalt sulfate refinery, Electra is executing a multi-pronged strategy focused on onshoring the electric vehicle supply chain.
Contact Sean at sean@proactiveinvestors.com