Aqua Metals executes $33M non-binding loan term sheet

Aqua Metals announced the signing of a non-binding term sheet with one of the world’s largest privately held companies for a secured credit facility of up to $33 million. This proposed strategic financial collaboration is intended to provide financing for the completion of the Phase One development of the Sierra AquaRefining Campus. Simultaneous to this development, Aqua Metals announced its pricing of an equity raise of $7 million, before commissions, discounts and expenses, to support ongoing operations and strengthen Aqua Metals’ balance sheet, which was an important pre-condition for the strategic lender. The equity financing is expected to close on Friday, May 17, 2024. The term sheet is non-binding, except for certain confidentiality and break-up provisions, and contemplates a closing by June 30, 2024, subject to the lenders’ continuing due diligence and the parties’ negotiation and execution of definitive agreements. Aqua Metals will strengthen its financial position through this strategic relationship with one of the world’s largest privately held companies, which is investing heavily in a global portfolio of decarbonization technologies. An extensive two-month review by the lender thoroughly examined the company’s financial health, ability to generate revenue and service the debt, strategic partnerships, and innovative supply and off-take agreements. In advance of this engagement, Aqua Metals also recently completed an independent engineering report and lifecycle analysis, conducted by ICF International, which validated the Company’s technology and its substantial reductions in waste and greenhouse gas emissions. This strategic financial partnership will bolster Aqua Metals’ capacity to advance its sustainable lithium battery recycling operations. The lender required its name to be withheld until the definitive loan agreement is executed.