Electra Announces Terms of US$30 Million Brokered Private Placement for Completion of Refinery Construction
TORONTO, Sept. 12, 2025 (GLOBE NEWSWIRE) -- Electra Battery Materials Corporation (NASDAQ:ELBM, TSXV:ELBM) ("Electra" or the "Company") announces the detailed terms of its previously announced US$30 million financing in connection with its ongoing financial restructuring (the "Restructuring") with the holders of senior secured convertible notes (the "Lenders").
The Company has entered into an engagement letter with Cantor Fitzgerald Canada Corporation ("Cantor") and ECM Capital Advisors Ltd. (together with Cantor, the "Co-Lead Agents"), as co-lead agents, each on its own behalf, and on behalf of a syndicate of agents which includes Independent Trading Group (ITG), Inc. and Kernaghan & Partners Ltd. (collectively with the Co-Lead Agents, the "Agents"), in connection with a "best-efforts" private placement (the "Offering") for the sale of a minimum of 40,000,000 units of the Company (each, a "Unit") at a price of US$0.75 (the "Issue Price") per Unit for aggregate gross proceeds of a minimum of US$30 million.
As previously announced on August 21, 2025, the Offering forms a key part of Electra's comprehensive plan to strengthen its capital structure and secure funding to advance the commissioning of North America's first battery-grade cobalt sulfate refinery, located in Temiskaming Shores, Ontario.
Each Unit consists of one common share (each, a "Common Share") and one Common Share purchase warrant (each, a "Warrant"), with each Warrant entitling the holder thereof to purchase one Common Share at a price of US$1.25 for a period commencing on the date that is 60 days following the completion of the Offering until the date that is 36 months following the completion of the Offering. The Company has also agreed to grant the Agents an option (the "Agents' Option") to sell up to an additional 15% of the Offering in Units at the Issue Price.
The Offering is supported by a US$10 million conditional commitment from the Lenders (the "Lender Commitment").
Existing shareholders have the preferential opportunity to participate in the Offering on the same terms as new investors. Existing shareholders wishing to subscribe may contact Heather Smiles at or +1-416-900-3891. All indications of interest must be received by 5:00 p.m. (ET) on September 26, 2025.
Net proceeds from the Offering are intended to be used to advance the completion and ramp-up of Electra's cobalt refinery, advance the Company's black mass recycling program, to repay the US$2 million aggregate principal amount of unsecured 90-day promissory notes issued to the Lenders on August 22, 2025, to pay expenses in connection with the Restructuring and to support general working capital and corporate purposes. In the event that the aggregate gross proceeds from the Offering exceeds US$34.5 million, all such excess amounts will be used to repurchase senior secured convertible notes from the Lenders.
The Offering is scheduled to close on or around October 15, 2025, (the "Closing Date") concurrently with the closing of the Restructuring and is subject to shareholder approval at the special meeting of the Company's shareholders to approve the Restructuring, which is currently anticipated to take ...
