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TORONTO - Electra Battery Materials Corporation (NASDAQ:ELBM; TSX-V:ELBM), currently valued at $19.33 million in market capitalization, announced Friday that its best-efforts brokered private placement financing has reached full subscription with investor orders totaling $30 million. According to InvestingPro analysis, the company has been quickly burning through cash, making this financing crucial for its operations.
The company reported strong participation from existing shareholders and new institutional investors in the offering, which is being conducted with Cantor Fitzgerald Canada Corporation and ECM Capital Advisors Ltd. as co-lead agents.
The financing forms part of Electra’s plan to strengthen its capital structure and secure funding to advance the commissioning of what it describes as North America’s first battery-grade cobalt sulfate refinery in Temiskaming Shores, Ontario. With a total debt of $51.88 million and a concerning current ratio of 0.05, InvestingPro data shows the company’s short-term obligations currently exceed its liquid assets.
While the order book is fully subscribed, the company noted that participation may still be available for qualified investors through the Agents’ Option to sell up to an additional 15% of Units at the Issue Price.
The offering is expected to close around October 17, 2025, concurrently with Electra’s previously announced financial restructuring. Closing remains subject to shareholder approval at the special meeting scheduled for October 15, as well as regulatory approvals from the TSX Venture Exchange and notification to the Nasdaq Stock Market.
Electra CEO Trent Mell said in the press release statement that the financing comes at a "pivotal moment" as the company moves toward commissioning its cobalt sulfate refinery.
The company’s strategy includes establishing the cobalt sulfate refinery, with future plans for nickel refining and battery recycling operations.
Any securities sold in the United States will be offered only to accredited investors pursuant to Rule 506(c) of Regulation D under the U.S. Securities Act, according to the company’s statement.
In other recent news, Electra Battery Materials Corporation has made significant strides in securing funding for its cobalt sulfate refinery. The company signed a term sheet for C$17.5 million in proposed funding from Invest Ontario to support the construction of the facility, which aims to produce battery-grade cobalt sulfate for electric vehicles. Additionally, Electra announced a $30 million financing package as part of its financial restructuring, with Cantor Fitzgerald Canada Corporation and ECM Capital Advisors Ltd. acting as co-lead agents for the private placement.
Electra has also amended the restructuring terms for its cobalt refinery, converting $41.3 million of outstanding secured convertible notes into approximately 55 million units. Each unit includes a common share and a warrant exercisable at $1.25 per share. In governance news, Jody Thomas, a former National Security and Intelligence Advisor to the Prime Minister of Canada, has been nominated to Electra’s Board of Directors.
H.C. Wainwright has reiterated its Buy rating on Electra Battery Materials, maintaining a price target of $2.20, following the company’s announcement of potential government funding. These developments indicate Electra’s proactive approach to securing financial and strategic resources for its projects.
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