Electra Battery Materials announced the expansion of brokerage private placement and synchronous non

Electra Battery Materials announced the expansion of brokerage private placement and synchronous non brokerage placements, with a total revenue of $21.5 million.



Electra Battery Materials Corporation (NASDAQ:.



According to the revised market offering, the company plans to sell up to 13636364 units ("Units") at a price of $1.10 per unit ("Offering Price") on a brokerage private placement basis. Red Cloud Securities Inc. represents a consortium of agents (collectively referred to as the "Agents") as the lead agent and exclusive bookrunner.



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The financing balance will be completed on the basis of non brokerage private equity ("non brokerage issuance"), with a total fundraising amount of $5 million, and the terms will be the same as market issuance. Non brokerage issuance is issued to holders of senior guaranteed convertible notes of the company. Unless otherwise stated, all amounts are calculated in Canadian currency.



Each unit will continue to include one ordinary share of the company (each "Ordinary Share") and one ordinary share purchase warrant (each "Warrant"). Each warrant grants its holder the right to purchase one ordinary share at a price of $1.74 at any time within 24 months after or before the delivery date (as defined below).



The company has granted the agent an option to sell up to 1363636 units beyond the issuance price within 48 hours prior to the deadline, in order to obtain an additional income of up to $1500000 (the "Agent Option" and together with market and non brokerage offerings, the "Offering").



This issuance no longer includes or is conditional on the strategic investment commitment originally announced by Three Fires Group Inc. on June 26, 2023. The company and Three Fires continue to work on a joint black material recycling strategy, including Three Fires serving as board representatives with Electra, a major recycling facility joint venture primarily used for crushing lithium-ion battery waste and a future strategic investment.



The company intends to use the net proceeds of this issuance to promote its black material recycling strategy, cobalt refinery, and use it as working capital to repay existing accounts payable and general corporate purposes.



This issuance is scheduled to end in the week of August 7, 2023 (the "Closing Date") and must meet customary conditions, including receiving all necessary regulatory approvals, including approval from the Toronto Stock Exchange Growth Enterprise Board and notification to the NASDAQ stock market.



As a consideration for its services, on the delivery date, the company shall pay a cash commission equivalent to 6% of the total proceeds of the listed issuance to the agent, and shall issue some non transferable warrants ("broker warrants") of the company to the agent equivalent to 6% of the single digit amount sold according to the market issuance.



Each broker's warrant will entitle the holder to purchase one exercisable common stock at a price of $1.10 at any time within 24 months after or before the delivery date, subject to adjustments in certain circumstances.



These units are offered privately to purchasers in the provinces of Alberta, British Columbia, Manitoba, Ontario, and Saskatchewan (the "Canadian Sales Jurisdiction") in accordance with the recognized investor exemptions outlined in Part 2 of National Document 45-106- Prospectus Exemptions ("NI 45-106"), as well as distributions outside Canada in accordance with Rule 72-503 of the Ontario Securities Commission, Buyers residing outside of Canada. A maximum of 4545454 units of listed issuance will be provided to the purchaser, residing in a Canadian sales jurisdiction, in accordance with the listed issuer financing exemption described in Part 5A of NI 45-106 ("Listed issuer financing exemption").