Electra Battery Materials sets terms for $30 million private placement

Electra Battery Materials Corporation (NASDAQ: ELBM; TSX-V: ELBM) announced the terms of a $30 million private placement to fund completion of its cobalt sulfate refinery construction in Ontario.

The company will sell a minimum of 40 million units at $0.75 per unit through Cantor Fitzgerald Canada Corporation and ECM Capital Advisors Ltd. as co-lead agents. Each unit includes one common share and one warrant allowing purchase of an additional share at $1.25 within 36 months of closing.

The offering includes a $10 million conditional commitment from holders of senior secured convertible notes. Agents have an option to sell an additional 15% of the offering.

Proceeds will advance completion and ramp-up of Electra's cobalt refinery in Temiskaming Shores, Ontario, which the company describes as North America's first battery-grade cobalt sulfate refinery. Funds will also support the black mass recycling program, repay $2 million in promissory notes, and provide working capital.

The offering is scheduled to close around October 15, 2025, pending shareholder approval at a special meeting expected around October 9, 2025, and regulatory approvals from the TSX Venture Exchange and Nasdaq notification.

Existing shareholders can participate on the same terms as new investors. Indications of interest must be received by 5:00 p.m. ET on September 26, 2025.

Agents will receive a 6% cash commission and warrants equal to 6% of units sold, reduced to 3% for certain purchasers including those under the lender commitment.

The offering forms part of Electra's financial restructuring with convertible note holders. If gross proceeds exceed $34.5 million, excess amounts will repurchase senior secured convertible notes.

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