Electra Closes US$5.5 Million Public Equity Offering
November 15 2022 - 12:55PM
Business Wire
Electra Battery Materials Corporation (NASDAQ: ELBM; TSX-V:
ELBM) (“Electra” or the “Company”) is pleased to
announce that it has closed its previously announced
overnight-marketed public offering (the “Offering”) of units
of the Company (the “Units”) on a best efforts basis at a
price of US$2.35 per Unit for gross proceeds of approximately
US$5.5 million (~CAD$7.4 million). Each Unit comprises one common
share in the capital of the Company (each, a “Common Share”)
and one Common Share purchase warrant (each, a “Warrant”).
Each Warrant entitles the holder to purchase one Common Share at a
price of US$3.10 at any time on or before the date that is 36
months after the closing date of the Offering.
The Company intends to use the net proceeds of the Equity
Offering for capital expenditures associated with the expansion and
recommissioning of the Company’s wholly-owned hydrometallurgical
cobalt refinery, including buildings, equipment, infrastructure,
and other direct costs, as well as engineering and project
management costs.
The Offering was conducted by a syndicate of agents led by
Cantor Fitzgerald Canada Corporation (“Cantor”), as lead
agent and sole book runner, and which included Canaccord Genuity
Corp., H.C. Wainwright & Co., LLC, A.G.P./Alliance Global
Partners, Desjardins Securities Inc., Paradigm Capital Inc. and Red
Cloud Securities Inc. (each an “Agent” and, together with
Cantor, the “Agents”). In connection with their services in
the Offering, the Agents received a cash fee of US$324,652.50. As
additional compensation for their services, the Company issued to
the Agents 138,150 compensation warrants (the “Broker
Warrants”) exercisable to acquire an aggregate of 138,150 Units
(the “Broker Warrant Units”) at any time on or before the
date that is 36 months after the closing date of the Offering, with
each Broker Warrant Unit consisting of one Common Share and one
Warrant.
The Company filed a preliminary prospectus supplement dated
November 8, 2022, as amended on November 9, 2022, as well as a
final prospectus supplement dated November 9, 2022 (the draft
prospectus supplement, amended draft prospectus supplement, and
final prospectus supplement, the “Prospectus Supplement”) to
its final short form base shelf prospectus dated November 26, 2020,
as amended by amendment no. 1 dated November 30, 2021
(collectively, the “Base Shelf Prospectus”) in connection
with the Offering. The Prospectus Supplement was filed with the
securities regulatory authorities in each of the provinces of
Canada, except Québec. The Prospectus Supplement was also filed
with the U.S. Securities and Exchange Commission (the “SEC”)
as part of a registration statement on Form F-10 (File No.
333-264982), effective upon filing with the SEC on May 16, 2022, in
accordance with the Multijurisdictional Disclosure System
established between Canada and the United States. The Prospectus
Supplement, the Base Shelf Prospectus, and the documents
incorporated by reference therein are available on the Company’s
issuer profile on SEDAR at www.sedar.com and with the SEC at
www.sec.gov. Copies of the Prospectus Supplement and accompanying
Base Shelf Prospectus may also be obtained in Canada from Cantor
Fitzgerald Canada Corporation, Attn: Equity Capital Markets, 181
University Avenue, Suite 1500, Toronto, ON, M5H 3M7, email:
ecmcanada@cantor.com, or in the United States from Cantor
Fitzgerald & Co., Attn: Capital Markets, 499 Park Avenue, 4th
Floor, New York, New York 10022 or by email at
prospectus@cantor.com. Prospective investors should read the
Prospectus Supplement and the accompanying Base Shelf Prospectus,
and the other documents the Company has filed, before making an
investment decision.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of the
securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful.
About Electra Battery Materials
Electra is a processor of low-carbon, ethically-sourced battery
materials.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Cautionary Note Regarding Forward-Looking Statements
This news release may contain forward-looking statements and
forward-looking information (together, “forward-looking
statements”) within the meaning of applicable securities laws and
the United States Private Securities Litigation Reform Act of 1995.
All statements, other than statements of historical facts, are
forward-looking statements. Generally, forward-looking statements
can be identified by the use of terminology such as “plans”,
“expects', “estimates”, “intends”, “anticipates”, “believes” or
variations of such words, or statements that certain actions,
events or results “may”, “could”, “would”, “might”, “occur” or “be
achieved”. Such forward-looking statements include, without
limitation, statements regarding the expected use of proceeds of
the Offering. Forward-looking statements involve risks,
uncertainties and other factors that could cause actual results,
performance, and opportunities to differ materially from those
implied by such forward-looking statements. Factors that could
cause actual results to differ materially from these
forward-looking statements are set forth in the management
discussion and analysis and other disclosures of risk factors for
Electra Battery Materials Corporation, filed on SEDAR at
www.sedar.com and with on EDGAR at www.sec.gov. Although Electra
Battery Materials Corporation believes that the information and
assumptions used in preparing the forward-looking statements are
reasonable, undue reliance should not be placed on these
statements, which only apply as of the date of this news release,
and no assurance can be given that such events will occur in the
disclosed times frames or at all. Except where required by
applicable law, Electra Battery Materials Corporation disclaims any
intention or obligation to update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20221115005981/en/
Joe Racanelli Vice President, Investor Relations
info@ElectraBMC.com 1.416.900.3891
Electra Battery Materials (NASDAQ:ELBM)
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