Electra Battery Materials Corporation (Electra), a listed Canadian battery material recycler, has planned to raise CAD 10 million (~USD 13 million) in a brokered private placement by selling up to 9,090,909 units at CAD 1.10 (~USD 1.45) per unit, with each unit comprising one common share and one common share purchase warrant.

The company has engaged Red Cloud Securities as the lead agent, followed by a group of agents. Upon closing, agents will be provided with a cash commission of 6% of the offering's gross proceeds and non-transferable warrants equal to 6% of the units sold. The agents have also been granted an option to sell up to 1,363,636 additional units at the issue price, potentially generating up to CAD 1.5 million (~USD 1.9 million) in additional gross proceeds.

The company intends to use the net proceeds to advance its black-mass recycling strategy and cobalt refinery, for working capital to repay existing debt, and for general corporate purposes.

The offering is expected to close on or about July 27, 2023, subject to customary conditions, including the receipt of all necessary regulatory approvals from the TSX Venture Exchange and notification to the Nasdaq stock market.