Core Viewpoint - Electra Battery Materials Corporation is undertaking a significant financial restructuring involving a debt-to-equity conversion to reduce its convertible debt by 60% and is launching a US$30 million equity financing to strengthen its capital structure and fund the commissioning of North America's first cobalt sulfate refinery [1][4][7]. Financial Restructuring - The company will convert approximately US$40 million of its outstanding convertible notes into equity at a price of US$0.60 per share, reducing total debt under the notes to approximately US$27 million [6][8]. - The remaining 40% of the notes will be exchanged for a new term loan, maturing three years after the transaction's completion, with an interest rate of 8.99% if paid in cash or 11.125% if paid in kind [9]. - Lenders are providing US$2 million in short-term bridge debt to support operations during the restructuring process, with a 12% annual interest rate [10]. Equity Financing - The equity financing will consist of US$30 million at a price of US$0.75 per unit, with each unit comprising one common share and one warrant exercisable for one common share at US$1.25 for three years [12][13]. - Current shareholders will have the right to purchase units on the same terms as new investors, proportionate to their existing ownership [6]. Strategic Importance - The cobalt sulfate refinery is crucial for North America's efforts to establish critical mineral supply chains, reduce reliance on China, and enhance national security [7][19]. - The project has garnered support from various government levels and lenders, highlighting its strategic significance [7]. Governance Changes - Following the completion of the transaction, the company plans to increase its board size from five to seven members, allowing lenders to appoint up to three board members based on their ownership stake [6][11].

Financial Data and Key Metrics Changes - The company reported revenues of $605 million for the first quarter, an 18% increase compared to the same quarter last year, and adjusted earnings per share of $2.14, up 75% year-over-year [6][11][20] - Adjusted compensation expenses were $372 million, up from $316 million in the same period last year, maintaining an adjusted compensation expense ratio of 61.5% [14][15][20] - The adjusted effective tax rate for the quarter was negative 0.8%, a significant decrease from 31.2% in the same quarter last year [19][20] Business Line Data and Key Metrics Changes - Corporate Finance generated $399 million in revenue, a 21% increase year-over-year, with 125 transactions closed, up from 116 [7][12] - Financial Restructuring revenues were $128 million, a 9% increase, with 35 transactions closed compared to 33 in the same quarter last year [8][13] - Financial and Valuation Advisory produced $79 million in revenues, a 16% increase, with 957 fee events, up from 847 [9][13] Market Data and Key Metrics Changes - The U.S. market continues to outpace EMEA in terms of revenue and activity levels, with expectations that this trend will persist [12][30] - The company noted that while the financial sponsor community's activity has been muted, there is optimism for a return to historic levels as market conditions improve [7][54] Company Strategy and Development Direction - The company is focused on maintaining a diversified business model across industries and geographies, which has shown resilience in the current macro environment [6][11] - The company hosted the inaugural Houlihan Lokey ONE conference, which attracted over 4,000 attendees, showcasing its global reach and commitment to client engagement [10] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the business environment, acknowledging ongoing volatility but noting improvements in client resilience [11][61] - The outlook for fiscal year 2026 remains positive, with expectations for continued growth across all business lines despite potential headwinds from tariffs and inflation [8][11] Other Important Information - The company ended the quarter with approximately $867 million in unrestricted cash and investment securities, reflecting a decline due to bonus payments made in May [20][21] - The hiring environment remains strong, with three new managing directors added in the first quarter, indicating a commitment to expanding talent across the organization [10][80] Q&A Session Summary Question: Insights on Corporate Finance market improvement - Management noted that while there has been improvement quarter by quarter, the market remains uncertain, and they are seeing resilience in client adjustments to current conditions [26][27] Question: Backlog trends and sector performance - Management refrained from commenting on backlog specifics but indicated solid performance across sectors, with EMEA lagging behind the U.S. [29][30] Question: Quality of assets and deal activity - Management acknowledged a strong environment but noted that the volume of deals is expected to pick up after Labor Day, with a focus on the quality of assets moving [34][35] Question: Non-compensation expense growth expectations - Management confirmed expectations for high single-digit growth in non-compensation expenses for the year, driven by headcount growth [36][48] Question: Restructuring market outlook - Management indicated that restructuring activity remains elevated, with a strong pipeline across both in-court and out-of-court transactions [41][43] Question: Growth of the secondaries business - Management expressed satisfaction with the growth of the secondaries business, indicating a positive outlook for its integration within the Capital Solutions group [44][45] Question: Sponsor market activity post-Labor Day - Management expects an increase in sponsor activity after Labor Day, noting that current activity levels are muted but showing signs of improvement [54][55] Question: Hiring strategy and focus areas - Management emphasized a commitment to hiring across all sectors, without a specific focus on any particular business or sector [81][82]

Financial Data and Key Metrics Changes - Revenues for Q4 were $666 million, up 28% year-over-year, and adjusted earnings per share were $1.96, up 54% compared to the same quarter last year [6] - For the fiscal year 2025, total revenues reached $2.4 billion, marking a 25% increase from the previous year, the highest annual revenue in the firm's history [6][10] - Adjusted compensation expenses for Q4 were $410 million, compared to $320 million in the same period last year, maintaining an adjusted compensation expense ratio of 61.5% [14][15] Business Line Data and Key Metrics Changes - Corporate Finance revenues were $413 million for the quarter, a 44% increase year-over-year, with 147 transactions closed, up from 121 in the same period last year [12] - Financial Restructuring revenues were $165 million for the quarter, a 6% increase year-over-year, with 38 transactions closed compared to 35 in the same quarter last year [13] - Financial and Valuation Advisory revenues were $89 million for the quarter, a 15% increase from the same period last year, with 1,224 fee events during the quarter [13] Market Data and Key Metrics Changes - The company noted that the average size of transactions and average transaction fees in Corporate Finance continued to grow, indicating a strengthening brand perception and quality of senior hires [7][8] - The capital markets business, now rebranded as Capital Solutions, had a record year, enhancing the platform with diversified, high-growth, and less volatile revenues [8] Company Strategy and Development Direction - The company executed three acquisitions in fiscal year 2025, expanding its industry, geographic, and product reach, which remains a key component of its growth strategy [7] - The management emphasized the importance of maintaining a diversified business model to navigate volatile market conditions effectively [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued elevated levels of restructuring activity, bolstered by recent market events [30] - The company acknowledged the challenges in forecasting due to current market volatility but noted that pitch level activity and deal processes were proceeding at a normal rate [23][24] Other Important Information - The Board approved a 5.3% increase in the quarterly dividend to $0.60 per share, to be paid in June [20] - The company ended the fiscal year with approximately $1.2 billion in unrestricted cash and equivalents, with a significant portion earmarked for accrued bonuses [19] Q&A Session Summary Question: How have revenues been tracking quarter to date amidst volatility? - Management indicated it is too early to provide meaningful indications but noted that pitch level activity and deal processes are moving at a normal rate [23] Question: What is the outlook for restructuring in light of recent events? - Management expects restructuring to remain at elevated levels, with confidence in continued activity [30] Question: How does the outlook differ between middle market and large scale M&A? - Management confirmed that mid-cap volumes are generally more resilient than large-cap volumes, a trend observed in previous cycles [44] Question: What is the state of the bolt-on acquisition pipeline for fiscal year 2026? - Management stated that discussions around acquisition opportunities remain active and are crucial to the strategic direction of the company [46] Question: How is the Capital Solutions business performing? - Management noted that the Capital Solutions Group continues to grow significantly, driven by various market trends [51] Question: What is the capacity for restructuring in a more stressed macro environment? - Management indicated that there is substantial capacity to handle a larger restructuring environment, with revenue per managing director currently lower than during previous economic downturns [55]

Corporate Update - Clear Blue Technologies International Inc. will provide a corporate update and report financial results for fiscal 2024 on April 30, 2025, after market close [1] - The company has successfully completed its financial restructuring and is now positioned to execute on future opportunities [2] Conference Call - A conference call is scheduled for May 1, 2025, at 11:00 a.m. Eastern Time to review the financial restructuring, 2024 results, and provide an update on the 2025 outlook and growth plan [2] Financial Restructuring - On April 9, 2025, the company announced the completion of its financial restructuring, which included a transaction with RE Royalties that replaced its banking loan [3] - The TSX-V approved the issuance of 1,388,889 equity units, each consisting of one common share priced at CAD 0.18 and one common share purchase warrant exercisable at CAD 0.30 for 24 months [3] Company Overview - Clear Blue Technologies International focuses on delivering clean, managed, "wireless power" for reliable, low-cost solar and hybrid power solutions across various applications [4] - The company manages thousands of systems across 37 countries, including the U.S. and Canada [4]