Electra Announces Brokered Private Placement for Gross Proceeds of up to $10 Million
Summary
TORONTO, July 12, 2023--(BUSINESS WIRE)--Electra Battery Materials Corporation (NASDAQ: ELBM; TSX-V: ELBM) ("Electra" or the "Company") is pleased to announce that the Company has entered into an agreement with Red Cloud Securities Inc., as lead agent and sole bookrunner, on behalf of a syndicate of agents (collectively, the "Agents"), in connection with a "best-efforts" private placement (the "Marketed Offering") for the sale of up to 9,090,909 units of the Company (the "Units") at a price of $1.10 per Unit (the "Issue Price") for gross proceeds of up to $10 million. Each Warrant shall entitle the holder thereof to purchase one Common Share at a price of $1.74 at any time on or before the date that is 24 months after the Closing Date (as defined below).The Company has granted to the Agents an option, exercisable up to 48 hours prior to the Closing Date, to sell up to an additional 1,363,636 Units at the Issue Price for additional gross proceeds of up to $1,500,000 (the "Agents Option", and together with the Marketed Offering, the "Offering").The Offering forms part of a $20 million financing package that includes the strategic investment commitment by Three Fires Group Inc. announced by the Company on June 26, 2023. Each Broker Warrant will entitle the holder to acquire one Common Share exercisable at a price of C$1.10, subject to adjustment in certain events, at any time on or before the date that is 24 months following the Closing Date.The Units are being offered on a private placement basis to purchasers in each of the provinces of Alberta, British Columbia, Manitoba, Ontario and Saskatchewan (the "Canadian Selling Jurisdictions") pursuant to the accredited investor exemption outlined in Part 2 of National Instrument 45-106 -- Prospectus Exemptions ("NI 45-106"), as well as to purchasers resident outside of Canada pursuant to Ontario Securities Commission Rule 72-503 Distributions Outside Canada. Prospective investors should read this offering document before making an investment decision.The Common Shares issuable from the sale of up to 4,545,454 Units under the Listed Issuer Financing Exemption will not be subject to a hold period in accordance with Canadian securities laws and are expected to be immediately freely tradeable if sold to purchasers resident in Canada. 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.