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Electra Battery Materials Announces Agreement Regarding Outstanding Convertible Notes Interest and Filing of Second Quarter 2024 Financial Reports
TORONTO / Aug 14, 2024 / Business Wire / Electra Battery Materials Corporation (NASDAQ: ELBM; TSX-V: ELBM) (“Electra” or the “Company”) is pleased to announce t
About this update from Electra Battery Materials Corp
[{"type":"text","content":"TORONTO / Aug 14, 2024 / 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...