Electra’s proposed cobalt refinery in Temiskaming Shores, Ont. Credit: Electra Battery Materials
Electra Battery Materials (NASDAQ, TSXV: ELBM) says it is conducting a “comprehensive financial restructuring” to shore up its balance sheet as it looks to advance the commissioning of what would be the first cobalt sulfate refinery in North America.
On Thursday, the battery metals developer announced plans to convert approximately $40 million of its outstanding debt into equity, with its lenders receiving shares priced at $0.60 each. This exchange would result in a 60% reduction in Electra’s total debt to $27 million. Its remaining notes will take the form of a new three-year loan.
The company will also launch a $30 million equity financing, offering units priced at $0.75 each. The units each contain one common share and one share purchase warrant, with the latter exercisable for three years at $1.25…
