FEAM - 5E Advanced Materials Announces First Boric Acid Production and Extended Waiver of Cash Covenant | Benzinga
HESPERIA, Calif., April 29, 2024 (GLOBE NEWSWIRE) -- 5E Advanced Materials, Inc. (NASDAQ:FEAM) (ASX: 5EA) ("5E" or the "Company"), a boron and lithium company with U.S. government Critical Infrastructure designation for its 5E Boron Americas Complex, today announced the Company's operations team has successfully achieved first production of boric acid and the Company amended its outstanding senior secured convertible notes to extend the waiver of the notes' cash covenant.
First Production and Next Steps
With the first production batch of boric acid now achieved, 5E will continue to refine operating parameters to meet and exceed customer specifications. 5E anticipates beginning the customer qualification process with a variety of customer prospects. The customer qualification process will include 5E providing samples of boric acid for customers to validate their customer-established qualification criteria. Upon successful feedback from customers that the product meets their specifications, 5E will then deliver larger volumes of boric acid from the SSF, to the customer production facilities for product validation.
Figure 1: Boric Acid from 5E's Boron America Complex – April 25, 2024
Figure 2: The 5E team filling a "super sack" of Boric Acid - April 25, 2024
Susan Brennan, Chief Executive Officer at 5E Advanced Materials, stated, "I am pleased that we have achieved first production of boric acid from our Small-Scale Facility (SSF). I am incredibly proud of our team's dedication and hard work to achieve another historic milestone. This marks an important step in bolstering and securing a boron supply chain that is made in America. While first production was no easy task, the team delivered through the normal challenges of starting up a new production process, to continue building a globally significant business in the boron market."
Amendment of Senior Secured Convertible Note
The Company also announced an amendment to its outstanding senior secured convertible notes, which extends a waiver of the existing financial cash covenant from June 28, 2024, to December 31, 2024. Beginning December 31, 2024, the cash covenant will require that the ...