5E Advanced Materials Announces Pricing of $4.0 Million Registered Direct Offering and Execution of Debt Commitment Letter to Issue $6.0 Million of Senior Secured Convertible Notes

Core Viewpoint - 5E Advanced Materials, Inc. has announced a securities purchase agreement to raise approximately $4.0 million through a registered direct offering and concurrent private placement of warrants, aimed at advancing its engineering program and providing working capital [1][2][3]. Group 1: Securities Offering - The company will sell 5,333,333 shares of common stock at a price of $0.75 per share, along with Series A and Series B warrants, each allowing the purchase of an additional 5,333,333 shares at an exercise price of $0.7981 [1][2]. - The gross proceeds from the offering are estimated to be around $4.0 million before deducting fees and expenses, with the closing expected on or about August 27, 2024 [2]. Group 2: Use of Proceeds - Proceeds from the offering will be utilized to advance the FEL-2 engineering program and to support the company's small-scale facility operations and customer qualification program [3]. Group 3: Debt Commitment - The company has also entered into debt commitment letters to issue $6.0 million in senior secured convertible notes, with a conversion price reflecting a 25% premium to the offering price, maturing in August 2028 [4]. - The notes will pay interest in-kind semi-annually at a rate of 10%, with the closing expected in September 2024 [4]. Group 4: Company Overview - 5E Advanced Materials, Inc. focuses on becoming a vertically integrated leader in boron and lithium materials, targeting applications in electric transportation, clean energy, and domestic security [7]. - The company aims to develop capabilities from upstream extraction to downstream processing of boron and lithium products, leveraging its significant domestic resources in Southern California [7].