Electra US$30 Million Financing Fully Subscribed

Rhea-AI Summary

Electra Battery Materials (NASDAQ: ELBM) has successfully secured full subscription for its US$30 million private placement financing, attracting both existing shareholders and new institutional investors. The offering, co-led by Cantor Fitzgerald Canada Corporation and ECM Capital Advisors Ltd., is crucial for funding North America's first cobalt sulfate refinery in Temiskaming Shores, Ontario.

The financing includes an Agents' Option for up to 15% additional Units and is expected to close around October 17, 2025, concurrent with the company's financial restructuring. The closing requires shareholder approval at the October 15 special meeting and regulatory approvals from TSX Venture Exchange and Nasdaq.

Positive

• Successfully secured full US$30 million subscription for private placement
• Strong participation from both existing shareholders and new institutional investors
• Funding secured for North America's first cobalt sulfate refinery
• Additional 15% capacity available through Agents' Option

Negative

• Requires shareholder approval and regulatory clearances to close
• Company undergoing financial restructuring
• Dilution of existing shareholders through new share issuance

Insights

Financial Analyst

Electra's $30M financing success strengthens capital position for North America's first cobalt sulfate refinery commissioning.

Electra's announcement of a fully subscribed $30 million private placement represents a significant capital infusion at a critical juncture for the company. The strong participation from both existing shareholders and new institutional investors signals market confidence in Electra's business model despite challenging capital market conditions for junior mining companies.

This financing is strategically timed to coincide with the company's previously announced financial restructuring, creating a more robust capital foundation. The funds will directly support the commissioning of North America's first cobalt sulfate refinery in Temiskaming Shores, Ontario—a facility positioned to become a crucial node in the North American battery supply chain.

The involvement of Cantor Fitzgerald and ECM Capital as co-lead agents adds credibility to the raise, while the potential for an additional 15% in funding through the Agents' Option could provide extra financial cushion if exercised. However, investors should note that the financing remains contingent on shareholder approval at the upcoming October special meeting and regulatory clearances.

The successful raise demonstrates management's ability to secure capital for a critical minerals project that aligns with current policy priorities supporting domestic battery supply chains. This positions Electra to potentially capture first-mover advantage in the North American cobalt refining space, though execution risks during the commissioning phase will remain the next critical challenge for management to navigate.

TORONTO, Sept. 26, 2025 (GLOBE NEWSWIRE) -- Electra Battery Materials Corporation (NASDAQ: ELBM; TSX-V: ELBM) (“Electra” or the “Company”) today reports that its previously announced best-efforts brokered private placement financing (the “Offering”) is fully subscribed, with investor orders totaling US$30 million. Electra received strong participation from both existing shareholders and new institutional investors.

“We are grateful for the strong support of our shareholders and encouraged by the confidence shown by new institutional investors participating in this financing,” said Trent Mell, Electra CEO. “This comes at a pivotal moment for Electra, as we move toward commissioning North America’s first cobalt sulfate refinery. With a strengthened board of directors and a favorable policy environment supporting critical minerals development, we are well-positioned to deliver long-term value for shareholders and play a meaningful role in the clean energy transition.”

The Offering is being conducted with Cantor Fitzgerald Canada Corporation and ECM Capital Advisors Ltd. acting as co-lead agents, together with a syndicate of agents (the “Agents”), and forms a key part of Electra’s comprehensive plan to strengthen its capital structure and secure funding to advance the commissioning of North America’s first battery-grade cobalt sulfate refinery, located in Temiskaming Shores, Ontario. See September 12, 2025 news release for additional details of the Offering.

Although the order book is fully subscribed, the Company notes that participation in the Offering may still be available for qualified investors through the exercise of the Agents’ Option to sell up to an additional 15% of Units to be issued under the Offering at the Issue Price. Interested investors who wish to be considered for participation under the Agents’ Option should contact the Company or its agents as soon as possible.

Existing shareholders wishing to participate in the Offering have until September 26, 2025, at 5:00pm ET. Shareholders who wish to subscribe should contact the Company as soon as possible to confirm their interest.

The Offering is expected to close on or about October 17, 2025, concurrently with the closing of Electra’s previously announced financial restructuring (the “Restructuring”). Closing remains subject to the receipt of shareholder approval at the special meeting scheduled for October 15, 2025, as well as other customary conditions, including regulatory approvals from the TSX Venture Exchange and notification to the Nasdaq Stock Market.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. Any securities sold in the United States shall be sold only to “accredited investors” (as such term is defined in Rule 501(a) under the U.S. Securities Act) pursuant to Rule 506(c) of Regulation D under the U.S. Securities Act.

About Electra Battery Materials

Electra is a leader in advancing North America’s critical minerals supply chain for lithium-ion batteries. Currently focused on developing North America’s only cobalt sulfate refinery, Electra is executing a phased strategy to onshore critical minerals refining and reduce reliance on foreign supply chains. In addition to establishing the cobalt sulfate refinery, Electra’s strategy includes nickel refining and battery recycling. Growth projects include integrating black mass recycling at its existing refining complex, evaluating opportunities for cobalt production in Bécancour, Quebec, and exploring nickel sulfate production potential in North America. For more information, please visit www.ElectraBMC.com.

Contact
Heather Smiles
Vice President, Investor Relations & Corporate Development
Electra Battery Materials
info@ElectraBMC.com
1.416.900.3891

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward-Looking Statements
This news release may contain forward-looking statements and forward-looking information (together, “forward-looking statements”) within the meaning of applicable securities laws and the United States Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, are forward-looking statements and include, but are not limited to, statements regarding the closing of the Offering and the Restructuring and anticipated timing thereof, the exercise of the Agents’ Option, receipt of required regulator and shareholder approvals, the expected ramp-up and commissioning of the cobalt sulfate refinery and the Company’s future growth plans, including nickel refining and battery recycling. Generally, forward-looking statements can be identified by the use of terminology such as “plans”, “expects”, “will,” “estimates”, “intends”, “anticipates”, “believes” or variations of such words, or statements that certain actions, events or results “may”, “could”, “would”, “will,” “might”, “occur” or “be achieved”. Forward-looking statements are based on certain assumptions, and involve risks, uncertainties and other factors that could cause actual results, performance, and opportunities to differ materially from those implied by such forward-looking statements. Among the bases for assumptions with respect to the potential for additional government funding are discussions and indications of support from government actors based on certain milestones being achieved. Factors that could cause actual results to differ materially from these forward-looking statements are set forth in the management discussion and analysis and other disclosures of risk factors for Electra Battery Materials Corporation, filed on SEDAR+ at www.sedarplus.com and on EDGAR at www.sec.gov. Other factors that could lead actual results to differ materially include failure to obtain required approvals or satisfy closing conditions, changes in government policy or funding commitments, delays in construction or commissioning of the refinery, inability to complete the Offering or the Restructuring on the proposed terms and general economic, market, and geopolitical conditions. Although the Company believes that the information and assumptions used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed times frames or at all. Except where required by applicable law, the Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

FAQ

How much funding did Electra Battery Materials (ELBM) secure in its September 2025 private placement?

Electra secured US$30 million in fully subscribed private placement financing, with potential for additional 15% through Agents' Option.

When will Electra's (ELBM) private placement financing close?

The financing is expected to close on or about October 17, 2025, concurrent with the company's financial restructuring, subject to shareholder and regulatory approvals.

What is the purpose of Electra's (ELBM) US$30 million financing?

The financing will fund the commissioning of North America's first battery-grade cobalt sulfate refinery in Temiskaming Shores, Ontario.

Who are the lead agents for Electra's (ELBM) private placement?

Cantor Fitzgerald Canada Corporation and ECM Capital Advisors Ltd. are acting as co-lead agents for the offering.

What approvals does Electra (ELBM) need to close the financing?

Electra needs shareholder approval at the October 15, 2025 special meeting, plus regulatory approvals from the TSX Venture Exchange and Nasdaq Stock Market.