Electra Battery sets out terms of $30M (U.S.) placement

Executive Summary

• Electra Battery Materials Corp. disclosed terms for a US$30 million best‑effort private placement of at least 40 million units (each unit = 1 common share + 1 warrant).
• Proceeds will fund completion and ramp‑up of its cobalt‑sulphate refinery, black‑mass recycling program, repayment of unsecured promissory notes, restructuring expenses, and general working capital.
• The offering includes a 6 % cash commission to agents (reduced to 3 % on lender‑committed units) and an option for agents to sell up to an additional 15 % of the units at the issue price.

Key Details

• Units Offered: Minimum 40 million units at US$0.75 per unit → minimum gross proceeds of US$30 million.
• Unit Composition: 1 common share + 1 common share purchase warrant (exercise price US$1.25 per share).
• Warrant Terms: exercisable from 60 days after closing until 36 months thereafter.
• Agent Option: Agents may sell up to an additional 15 % of the offering at the same issue price.
• Conditional Lender Commitment: US$10 million commitment supporting the placement.
• Use of Proceeds:
• Complete and ramp‑up cobalt refinery (Temiskaming Shores, ON).
• Advance black‑mass recycling program.
• Repay US$2 million unsecured 90‑day promissory notes (issued Aug 22 2025).
• Pay restructuring expenses.
• General working capital and corporate purposes.
• Excess proceeds above US$34.5 million to repurchase senior secured convertible notes.
• Closing Timeline: Expected closing around Oct 15 2025, concurrent with restructuring closure; shareholder approval meeting anticipated around Oct 9 2025.
• Commission & Warrants to Agents:
• Cash commission = 6 % of gross proceeds (reduced to 3 % on lender‑committed units).
• Non‑transferable broker warrants equal to 6 % of units sold (except for president’s list purchases and lender‑committed units).
• Regulatory & Offering Exemptions: Private placement under NI 45‑106 listed issuer financing exemption (Canada, except Quebec) and OSCR Rule 72‑503 for non‑Canadian investors; accredited investor exemption also applicable.
• Holding Periods: Shares from up to 6.4 million units and related warrants will be freely tradable immediately; other securities subject to a statutory hold period of four months + one day in Canada; no hold period for securities sold outside Canada.

Notable Quotes

(No direct quotes were provided in the release.)