Electra Battery amends restructuring terms

Executive Summary

• Electra Battery Materials Corp. amended its recapitalization, converting $41.3 M of secured convertible notes into ~55 M equity units and a new three‑year term loan.
• The restructuring reduces total debt to approximately $27.5 M (down 40%) and issues a one‑time bonus of 3,822,341 common shares at a deemed price of $0.90 per share.
• Units are priced at $0.75 each (one common share plus one warrant) with warrants exercisable at $1.25 for 36 months, providing up to $30 M gross proceeds under the prior private placement framework.

Key Details

• Conversion: ~$41.3 M of outstanding secured convertible notes (principal + accrued interest) converted into ~55 M units on the same terms as the brokered private placement.
• Debt Reduction: 60 % of convertible debt exchanged for equity, lowering total note‑related debt to ~ $27.5 M.
• New Term Loan: Remaining 40 % of notes (plus interest) restructured into a three‑year term loan.
• Equity Bonus: Lenders receive a one‑time issuance of 3,822,341 common shares at a deemed issue price of $0.90 per share.
• Unit Structure: Each unit = 1 common share + 1 warrant; unit price set at $0.75.
• Warrant Terms: Warrants allow purchase of one additional common share at $1.25 per share, exercisable for 36 months beginning 60 days after closing.
• Regulatory Compliance: TSX‑V waiver for a $0.60 per note price was denied; restructuring proceeds at $0.75 per unit to meet TSX‑V Policy 4.3 requirements.
• Conditions to Completion: Execution of definitive documentation, shareholder approval, TSX Venture Exchange consent, and Nasdaq notification required.
• Strategic Impact: Reduces near‑term debt obligations, restores financial flexibility, and supports progression toward completion of North America’s first battery‑grade cobalt sulphate refinery.

Notable Quotes

(No direct quotes provided in the release.)