ELBM - Electra announces $51M note offering repurchase and cancel existing notes

• Electra Battery Materials ( NASDAQ: ELBM ) entered into subscription agreements with investors for the issuance of $51M principal amount of 8.99% senior secured convertible notes due February 2028.
• The company is also in active discussions with the Government of Canada and Government of Ontario, seeking a commitment of up to $7.5M (C$10M) in additional total funding to support the recommissioning of the company’s wholly-owned hydrometallurgical cobalt refinery located north of Toronto.
• The governments of Canada and Ontario have each previously provided $7.5M toward the project.
• The company will purchase all of the outstanding ~$36M of existing 6.95% senior secured notes due 2026.
• The net proceeds of ~$15M will be used for capital expenditures associated with the expansion and recommissioning of the Refinery, including buildings, equipment, infrastructure, and other direct costs, as well as engineering and project management costs.
• Upon completion, the company will have $51M principal amount of notes outstanding, and no 2026 Notes outstanding.
• The notes will bear interest at 8.99% per annum, payable in cash semi-annually in arrears in February and August of each year and will mature in February, 2028.

For further details see: