Electra Battery Materials Announces Proposed Amendments to Outstanding Warrants

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[{"type":"text","content":"TORONTO / Dec 01, 2023 / Business Wire / Electra Battery Materials Corporation (NASDAQ: ELBM; TSX-V: ELBM) (“Electra” or the “Company”) announced today that it intends to amend the terms of an aggregate of 10,796,054 outstanding common share purchase warrants (the “Warrants”) due to expire on February 13, 2028. The Warrants were issued in connection with a private placement transaction that closed on February 13, 2023. They are currently exercisable at US$2.48 per common share (“Common Share”). Under the proposed amendments to the Warrants (the “Proposed Amendments”), the exercise price will be reduced to CAD$1.00 per Common Share. In addition, the Warrants will be 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 TSX Venture Exchange (the “TSXV”) exceeds CAD$1.00 by 20% or more for ten (10) consecutive trading dates (the “Acceleration Event”), with the Reduced Term will begin seven (7) calendar days after such ten (10) consecutive trading day period. Upon the occurrence of an Acceleration Event, holders of the Warrants may exercise the Warrants on a cashless basis, based on the value of the Warrants at the time of exercise, subject to compliance with the policies of the TSXV. The Proposed Amendments were agreed upon with the holders of such Warrants following constructive negotiations and more closely align the terms of the Warrants with current market conditions. As partial consideration for the Proposed Amendments, the holders of the warrants have agreed not to exercise certain adjustment provisions they hold in connection with the US$51 million principal amount of 8.99% senior secured convertible notes due February 2028 (the “Notes”). 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. The Proposed Amendments also serve to reduce potential dilution in Company capitalization in the event the Notes are converted into equity, while the cashless exercise feature will serve to concurrently reduce the dilutive effect of future exercises of Warrants upon the occurrence of an Acceleration Event. The Proposed Amendments remain subject to the approval of the TSXV. About Electra Battery Materials Electra is a pr...

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