Electra Battery Materials Corporation (NASDAQ: ELBM; TSX-V:
ELBM) (“Electra” or the “Company”) is pleased to announce the
appointment of Heather Smiles as Vice President, Investor Relations
and Corporate Development.
In her role, Heather will be responsible for building and
maintaining a strategic investor relations program and contributing
to the advancement of our Company’s vision of becoming the leading
North American refinery for electric vehicle battery materials.
Heather previously served as Director, Investor Relations for
Electra until 2019.
“We are excited to welcome Heather back to the team as we
continue to negotiate the funding to complete construction of North
America’s only battery grade cobalt refinery,” said Trent Mell,
CEO. “We have reconfigured the leadership team with a focus on the
bench strength required to transition the Company from developer to
operator. At this crucial period of our strategic plan, Heather’s
skills and history with the Company will be a strong asset to the
senior leadership team. In addition to investor relations
functions, Heather will play an important role in advancing
discussions on strategic opportunities and partnerships.”
“Recent tightening of US EV tax credit eligibility to exclude
EVs containing components from battery supply chain partners with
25% Chinese ownership further increases the need for supply chain
onshoring,” Mell continued, “and Electra is uniquely positioned
within North America to meet this need.”
“From inception, the focus for the Company has always been to
onshore the battery supply chain,” said Heather Smiles, “and we
have evolved over time from mineral exploration to battery
materials refining. This is an exciting time to rejoin Electra and
see the refinery brought into production. The Canadian cobalt
refinery is the first of its kind in North America, unique in its
ability to support the domestic EV industry.”
Heather brings with her nearly 15 years’ experience in investor
relations, capital markets, strategic planning, and communications.
She has previously worked with global metals and mining companies
including Electra, Baffinland Iron Mines, and Golden Star
Resources. She has a proven track record working with boards,
executive teams and operations, analyzing business situations to
develop and implement practical investor and stakeholder programs
and strategies.
In accordance with its Long-Term Incentive Plan, the Company has
issued 100,000 stock options. Long-term incentive grants are an
important retention and incentive tool for key employees, and a
mechanism to align interests with shareholders. The stock options
grant holders the right to purchase common shares of Electra at an
exercise price of $0.50 and will vest in three equal tranches on
the first, second and third anniversary of the grant date over a
four-year period. All grants are subject to the approval of the TSX
Venture Exchange (the “TSXV”).
Update on Convertible Notes
Further to its news release dated December 1, 2023, Electra has
received the approval of the TSXV as well as warrantholders, to
amend the terms of 10,796,054 outstanding common share purchase
warrants (the “Warrants”) issued on February 13, 2023 and due to
expire on February 13, 2028. The Company has entered into a
supplemental indenture to effect the amendment with TSX Trust
Company, as warrant agent, to the warrant indenture governing the
Warrants dated February 13, 2023 between the Company and the
warrant agent. The Warrants were issued in connection with a
private placement transaction for US$51 million in principal amount
of 8.99% senior secured convertible notes due February 2028 (the
“Notes”) that closed on February 13, 2023. When issued, the
Warrants were exercisable at US$2.48 per common share.
Pursuant to the amendment, the exercise price of the Warrants
was reduced to CAD$1.00 per common share. In addition, the Warrants
were amended to include an acceleration clause such that the term
of the Warrants will be reduced to 30 days (the “Reduced Term”) in
the event the closing price of the common shares on the TSXV
exceeds CAD$1.20 for ten consecutive trading dates (the
“Acceleration Event”), with the Reduced Term to begin upon release
of a press release by the Company within seven calendar days after
such ten consecutive trading day period. Upon the occurrence of an
Acceleration Event, warrantholders may exercise the Warrants on a
cashless basis, based on the value of the Warrants at the time of
exercise.
The amendment was agreed upon with the warrantholders following
constructive negotiations and more closely aligns the terms of the
Warrants with current market conditions. At the same time, certain
pricing adjustment provisions in the Notes will not be exercised,
and as a result, the Notes have not been re-priced at a lower
exchange rate and no amendments have been made in respect of the
debt conversion ratio. As a result, potential dilution in Company
capitalization has been reduced in the event the Notes are
converted into equity, while the cashless exercise feature added to
the Warrants will serve to concurrently reduce the dilutive effect
of future exercises of Warrants upon the occurrence of an
Acceleration Event.
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 and operating a black mass demonstration
plant, Electra is executing a multipronged strategy to onshore the
electric vehicle supply chain. Keys to its strategy are integrating
black mass recycling and nickel sulfate production at Electra’s
cobalt refinery located north of Toronto, advancing Iron Creek, its
cobalt-copper exploration-stage project in the Idaho Cobalt Belt,
and expanding cobalt sulfate processing into Bécancour, Quebec. 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.
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 potential for additional
funding from the Federal government of Canada and the government of
Ontario and the quantum and terms thereof, adjustments of interest
rates on the occurrence of certain events which may impact the
attributes of the notes and warrants issued under the Note
offering, including but not limited to a “green bond” designation,
and the effective conversion rate of the Notes and Warrants, which
is subject to adjustment in certain circumstances. Forward-looking
statements are based on certain assumptions, and 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. Among the bases for
assumptions with respect to the potential for additional government
funding are discussions and indications of support from government
actors based on certain milestones being achieved. 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.sedarplus.com and with on EDGAR at www.sec.gov. Other factors
that could lead actual results to differ materially include changes
with respect to government or investor expectations or actions as
compared to communicated intentions, and general macroeconomic and
other trends that can affect levels of government or private
investment. Although the Company 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, the Company disclaims any intention or obligation
to update or revise any forward-looking statement, whether as a
result of new information, future events or otherwise.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240115537420/en/
Heather Smiles Vice President, Investor Relations &
Corporate Development info@ElectraBMC.com 1.416.900.3891
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