unit36
5 days ago
Electra Announces Agreement Regarding Outstanding Convertible Notes Interest and Filing of Second Quarter 2024 Financial Reports
Source: Business Wire
Electra Battery Materials Corporation (NASDAQ: ELBM; TSX-V: ELBM) (“Electra” or the “Company”) is pleased to announce that the Company and the holders of US$51 million principal amount of 8.99% senior secured convertible notes have agreed that all accrued interest owing to August 15, 2024, on the convertible notes will be “paid-in-kind,” not in cash, and added to the outstanding principal amount of the notes. As a result of this agreement, the Company will issue additional notes in the principal amount of US$6.5 million. The Company also announces the filing of its second quarter financial results.
David Allen, Electra’s CFO, said regarding the noteholder agreement, “We are grateful for our lenders’ continued support of our vision and business plan. This agreement allows us to preserve liquidity and allocate capital towards funding the completion of the cobalt refinery project rather than paying interest in cash.”
Electra’s CEO, Trent Mell, said “The cobalt refinery continues to be our primary focus, with the objective of resuming construction shortly after funding is secured. We have maintained rigorous management of our financial resources throughout the quarter and the recent agreement with our lenders further reflects this rigor. The Canadian Refinery is our flagship asset and will be the first of its kind in North America. Beyond refining cobalt hydroxide to produce cobalt sulfate for the battery market, we are exploring battery recycling to close the loop within the supply chain. In June, the Government of Canada entered a $5 million funding agreement with Electra to support the next phase of our battery recycling program. This continued support demonstrates a recognized importance of onshoring the battery supply chain and reducing reliance on China.
“Recent market reports have alluded to a slowing of EV growth rates for some EV manufacturers, but the outlook remains exceptionally strong,” Mell continued. “With global demand for EVs expected to increase by 22% in 2024, according to Rho Motion, and more than 90% of cobalt chemical, the material used for batteries, coming from refineries in China, the urgency to diversify the supply chain to meet the growth challenges ahead is becoming more pressing.
Mell concluded, “Through our partnerships with ERG and Glencore, we have secured feed material to meet the full capacity of our refinery. Customer demand for our cobalt sulfate production far exceeds our production capacity and LG Energy Solutions has already secured up to 80% of our production. We are strategically positioned to be a foundational component of the North American battery supply chain.”
The 8.99% senior secured convertible notes were issued pursuant to an indenture dated February 13, 2023, entered into among the Company, GLAS Trust Company LLC, as trustee for the notes and the noteholders. A supplemental indenture to the note indenture will be entered into which will govern the additional notes, a copy of which will be filed on SEDAR+ at www.sedarplus.com and with on EDGAR at www.sec.gov.
The payment in kind and the issuance of additional notes is subject to certain conditions, including the approval of the TSX Venture Exchange.
The Company’s cash balance at the end of the quarter was C$4.8M. The Company’s second quarter 2024 financial reports are available on SEDAR+ (www.sedarplus.com) and the Company’s website (www.ElectraBMC.com).
Electra’s is recommissioning and expanding its refinery, and its long-term vision includes additional phases to potentially provide recycled battery materials and battery grade nickel to the North American and global electric vehicle battery market:
Completion of the recommissioning of the refinery to produce at an initial rate of 5,000 tonnes per annum of battery cobalt contained in cobalt sulfate from cobalt hydroxide.
12-month permit amendment process and expansion of certain circuits to increase cobalt production to 6,500 tonnes per annum of battery grade cobalt sulfate, reaching the nameplate capacity of the crystallization circuit.
Recycling of black mass, recovering lithium, nickel, cobalt and other critical metals, supported by a planned joint venture with the Three Fires Group to collaborate to source battery waste and produce black mass for refining at Electra’s refinery.
Expansion to a second cobalt sulfate facility in Bécancour, Quebec and a strategically located North American nickel sulfate refinery.
Throughout 2023, Electra operated a plant scale battery recycling trial at its refinery, processing more than 40 tonnes of black mass material to recover valuable elements such as lithium, nickel, cobalt, manganese, graphite, and copper. The goal was to make high-quality nickel, cobalt, and lithium products. While the current phase of the recycling project is now largely complete, ongoing work aims to unlock additional value from the final saleable products and completed advanced engineering studies.
Electra’s low carbon hydrometallurgical refinery in Canada is permitted and has an estimated current replacement value of approximately US$200 million. The Company requires approximately US$60 million to complete construction. The cobalt refinery project continues to be derisked through the on-site receipt of most long lead-time equipment and by the 2023 commissioning of the legacy refinery operations for the black mass demonstration plant.
About Electra Battery Materials
Electra is a processor of low-carbon, ethically-sourced battery materials. Currently focused on developing North America’s only cobalt sulfate refinery, Electra is executing a phased strategy to onshore the electric vehicle supply chain and provide a North American solution for EV battery materials refining. Keys to its strategy are integrating black mass recycling, expanding cobalt sulfate processing into Bécancour, Quebec, and exploring nickel sulfate production potential within North America. For more information, please visit www.ElectraBMC.com.
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.
geenback
9 months ago
Electra's name was mentioned in this article. It would certainly help make up the money needed to finish their plant without share dilution. Plus if they make an announcement that they are receiving part of this it will definitely send the share price up.
" The long-awaited Critical Minerals Infrastructure Fund (CMIF) launched on Monday, and several northern Ontario mining companies are hopeful their projects will be selected by Ottawa.
With $1.5 billion available over the next seven years, there is a lot of money at play. Up to $300 million is available in the first call for proposals, which ends in late February.
The program has two streams. One focuses on pre-construction and project development, and the other looks at infrastructure deployment.
It is a cornerstone of Canada's critical minerals strategy, which aims to help the country become a major player in the global mining supply chain as the world tries to move towards a lower-carbon economy.
Selected companies could access up to $50 million in funding per project, a sum large enough to help "unlock" major deposits, according to Canada Nickel CEO Mark Selby.
If it eventually manages to reach full production, that company will be the only cobalt refinery in North America. Cobalt is another important metal found in lithium-ion batteries.
CEO Trent Mell has been eyeing all government programs since the project ran out of funds earlier this summer.
Funding from CMIF would almost be enough to cover the missing $60 million US the company needs to complete the project.
"This program could get us into production in well under two years," said Mell. "This would be a huge opportunity."
Canada's critical mineral list includes 31 minerals, with lithium, graphite, nickel, cobalt, copper and rare earth elements considered a priority.
KashGreen
12 months ago
Electra Battery Materials Corporation (ELBM) Upgraded to Buy: Here's What You Should Know
11:00 am ET August 23, 2023 (Zacks) Print
Electra Battery Materials Corporation (ELBM) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.
The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.
The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.
As such, the Zacks rating upgrade for Electra Battery Materials Corporation is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock Prices
The change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
For Electra Battery Materials Corporation, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.
Harnessing the Power of Earnings Estimate Revisio
DawgTrading
12 months ago
Market Maker (hedge funds), and it could even be the ones putting price targets out there (wainwright etc.)... they sell shares short doesnt matter if they borrowed them or not properly and settled the trades. For them it raises cash, and since the volume isnt enough for them to worry about covering, they wipe out accounts as they can stay solvent much longer than retail usually can.
There is also the shares that were bought in the private placement, they could just be selling those on the market at a loss even to recoup some cash from those placements, and then theyll have plenty still to sell later if/when the price recovers.
Look at the short interest jumping higher now they have no immediate need to cover those.
08/15/2023 1,672,407
07/31/2023 1,355,779
07/14/2023 719,534
https://www.nasdaq.com/market-activity/stocks/elbm/short-interest
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Monksdream
8 months ago
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