Electra Battery convertible holders OK waiver to postpone coupon

By Marisa Wong

Los Angeles, Feb. 29 – Electra Battery Materials Corp. announced it entered into an agreement with the holders of its $51 million of 8.99% senior secured convertible notes, according to a Tuesday press release and 6-K filing with the Securities and Exchange Commission.

The noteholders agreed to a postponement of the unpaid coupon on the notes payable on the Aug. 15, 2023 and Feb. 15 interest payment dates.

Under the waiver, the company is required to make payment of accrued interest on Aug. 15, 2024, other than the interest to be paid through a share issuance (described below).

In the event of a default by the company under the indenture, the company is required to pay the interest immediately.

Pending repayment, the interest will be treated as additional principal amounts of notes entitled to the same rights as the notes under the indenture, including the accrual of additional interest and the right to convert into common shares of Electra Battery.

The company has agreed to satisfy $400,732 of the interest through the issuance of common shares to some noteholders. The share issuance will occur at a deemed value equivalent to 95% of the volume weighted average trading price of the stock for the five trading days immediately prior to issuance. The share issuance remains subject to the approval of the TSX Venture Exchange.

Electra Battery is a Toronto-based company involved in mining and refining raw materials for electric batteries.

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