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Transaction will strengthen the balance sheet and provide a funding package of up to $30 million to progress to the Final Investment Decision (FID)
HESPERIA, CA / ACCESSWIRE / January 14, 2025 / 5E Advanced Materials, Inc. (NASDAQ:FEAM)(ASX:5EA) ("5E" or the "Company"), a boron and lithium company with U.S. government Critical Infrastructure designation for its 5E Boron Americas Complex, today announced that it has entered into a Restructuring Support Agreement ("RSA") with its primary lenders and the holders of the Company's senior secured convertible notes ("Convertible Notes"), Ascend Global Investment Fund SPC, for and on behalf of Strategic SP ("Ascend"), Bluescape Special Situations IV LLC ("BEP"), and Meridian Investments Corporation ("Meridian," and together with Ascend and BEP, the "Lenders").
Agreement and Transaction Highlights
The Company has agreed to a funding and restructuring package (the "Transaction") with the Lenders that includes the following:
Lenders purchased an additional $5 million of Convertible Notes with a conversion price of $0.2920 with funding scheduled to close on January 14, 2025.
Subject to approval by the Company's stockholders at a special meeting, consummating the Transaction under the RSA would achieve the following:
Full equitization of all Convertible Notes for which the Company will issue 312,490,076 shares of common stock.
Lenders to purchase an aggregate $5 million of common stock at a purchase price of the lower of $0.2920 or a 5-day VWAP (Volume Weighted Average Price) following the equitization of the Convertible Notes ("Equity Purchase Price").
Lenders to receive one-year warrants to purchase a number of shares of common stock equal to an aggregate of up to $20 million divided by the Equity Purchase Price, with an exercise price of the Equity Purchase Price.
Ascend and BEP would each have the right to nominate two directors to the Company's board of directors, which will consist of four members immediately after the Transaction.
The Transaction has been supported unanimously by the Board of Directors (the "Board"). The closing of the Transaction remains subject to the satisfaction of all remaining closing conditions, including the 5E stockholder vote, to be held at an upcoming special stockholder meeting (the "Special Meeting"), which is anticipated to occur in the first calendar year quarter of 2025.
Posted In: FEAM
