Electra Battery Materials announces $5M financing

Electra Battery Materials (ELBM) Corporation received a non-binding term sheet from the holders of the existing secured notes issued by the Company on February 13, 2023 for a financing transaction which would result in gross proceeds to the Company of $5 million. These funds will enable the Company to initiate certain early works and winter preparations at the Ontario Refinery project site in Temiskaming Shores, Ontario, as well as being used for general corporate purposes. The Financing will consist of the offer and sale of secured convertible notes in the principal amount of $4 million and $1 million of common shares at a price of $0.543 per Share. The Notes will be issued together with 4,545,454 detachable common share purchase warrants entitling the holders to acquire an equivalent number of common shares at a price of C$1.00 per share for a period of twenty-four months following issuance. The Notes will rank pari passu to the Existing Notes, will bear interest at a rate of 12.0% per annum, payable quarterly in cash, and will mature on November 12, 2027. The Notes will also be guaranteed by substantially all of the Company’s subsidiaries and will be secured on a first lien basis by substantially all of the assets of the Company and its subsidiaries. At the option of the holder, the Notes will be convertible into common shares at an effective conversion price of $0.62445 per share, representing a 15% premium to the price of the Shares issuable in connection with the Financing. Conversion of the Notes and the New Warrants will be restricted to the extent it will result in a holder owning more than 9.9% of the outstanding common share capital of the Compan