TORONTO - Electra Battery Materials Corporation (NASDAQ: ELBM; TSX-V: ELBM) has reached an agreement with its note holders to defer interest payments originally due on August 15, 2023, and February 15, 2024. The company announced on Tuesday that the holders of US$51 million in senior secured convertible notes have consented to delay these payments until August 15, 2024, with certain conditions.
This postponement applies to the convertible note indenture dated February 13, 2023. Electra will satisfy US$400,732 of the interest through the issuance of common shares at a value of 95% of the volume weighted average trading price for the five days preceding the issuance, pending approval from the TSX Venture Exchange.
David Allen, Electra's CFO, stated that the company's primary focus remains on securing financing for the construction of its cobalt refinery. He added that today's agreement aids in stabilizing the company's balance sheet and ensures near-term obligations to lenders are met.
Additionally, the note holders have waived the requirement for Electra to file a registration statement for the resale of common shares underlying the notes and the common share purchase warrants issued on February 13, 2023.
In response to a notice from Nasdaq received on September 21, 2023, Electra plans to request a further 180-day extension to address non-compliance with the minimum bid price requirement. The company can regain compliance if its common share bid price closes at or above US$1.00 for at least 10 consecutive business days before March 19, 2024.
Electra also completed an employee share settlement, issuing 165,257 common shares at C$0.81 each to settle C$133,857 of earned performance-based incentive cash payments to certain non-officer employees. This settlement amount was lower than the initial anticipated total.
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