TORONTO - Electra Battery Materials Corporation (NASDAQ: ELBM; TSX-V: ELBM) has announced that it has received approval from the TSX Venture Exchange to issue common shares as a means of satisfying a portion of interest owed to note holders. The shares will cover US$400,732 of interest on US$51 million principal of 8.99% senior secured convertible notes.
The transaction is set to occur on March 21, 2024, with the value of the issued shares being determined by the greater of CAD$0.30 or 95% of the volume weighted average trading price of the shares over the five trading days leading up to the issuance date.
This strategic move by Electra Battery Materials Corporation is part of the company's financial management and reflects its adherence to the terms of the agreement announced on February 27, 2024. The company's decision to issue shares rather than pay cash interest is indicative of its efforts to manage its cash flow while meeting its financial obligations.
Shareholders and potential investors are reminded that the information provided by Electra Battery Materials Corporation, including statements about the timing and value of the share issuance, are based on current expectations and are subject to market conditions and other factors that could impact the company's ability to follow through on the proposed transaction.
The company has made it clear that these forward-looking statements should not be relied upon as guarantees of future performance, and actual results could differ from those projected. The company has not provided additional details on the potential impact of this share issuance on its overall financial position or on the market performance of its common stock.
This development is based on a press release statement from Electra Battery Materials Corporation and has been reported in compliance with journalistic standards to provide factual information without endorsement of the company's actions or implications of future performance.
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