HESPERIA, Calif., Aug. 26, 2024 (GLOBE NEWSWIRE) -- 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 securities purchase agreement with a single institutional investor to purchase 5,333,333 shares of common stock in a registered direct offering at a price of $0.75 per share, along with Series A warrants to purchase up to an aggregate of 5,333,333 shares of common stock and Series B warrants to purchase up to an aggregate of 5,333,333 shares of common stock in a concurrent private placement. Each of the Series A warrants and Series B warrants will have an exercise price of $0.7981 and will be exercisable six months from the date of issuance. The Series A warrants will expire on the five and one half-year anniversary from the date of issuance, and the Series B warrants will expire on the two and one half-year anniversary from the date of issuance.
The gross proceeds to the Company from the registered direct offering and concurrent private placement of warrants are estimated to be approximately $4.0 million before deducting the placement agent's fees and other estimated offering expenses payable by the Company. The offering is expected to close on or about August 27, 2024, subject to the satisfaction of customary closing conditions.
Maxim Group LLC is acting as the sole placement agent in connection with the registered direct offering and concurrent private placement of warrants.
The Company intends to use the proceeds from the registered direct offering and the notes described below to advance its FEL-2 engineering program towards completion while providing working capital to continue operating its small-scale facility and progressing the Company's customer qualification program.
Additionally, the Company announced it has entered into debt commitment letters whereby it will issue an aggregate of $6.0 million in senior secured convertible notes (the "Notes") to Ascend Global Investment Fund SPC and Bluescape Energy Partners at a conversion price reflecting a premium of 25% to the registered direct offering price. The Notes will mature in August 2028 and pay interest in-kind semi-annually at a rate of 10%, and the closing of the Notes is expected to occur in September 2024. Additional details regarding the Notes and the debt commitment letters are included in a current report on Form 8-K filed by the Company. The Notes will be sold in a private placement pursuant to Section 4(a)(2) of the Securities Act of 1933 (the "Act").
The shares of common stock in the registered direct offering are being ...
