5E Advanced Materials, Inc. (Nasdaq: FEAM) (ASX: 5EA) (“5E” or the
“Company”), a boron and lithium company with U.S. government
Critical Infrastructure designation for its 5E Boron Americas (Fort
Cady) Complex, today announced that it has taken proactive steps in
advancing discussions with its lender and several parties to
achieve a funding solution to position for next phase of 5E
operations. To facilitate this, Company has entered a standstill
agreement.
In August 2022, 5E secured a $60 million private
placement of senior secured notes convertible into common stock of
the Company from U.S. based institutional investment manager,
Bluescape Energy Partners. Under the terms of the private
placement, 5E was to maintain a minimum cash balance of $10 million
(“Cash Covenant”). Today, 5E announced its fiscal first quarter
2024 financial results and a cash balance of $11.8 million. With
respect to its ongoing financing and commercial initiatives, the
Company required a time extension to achieve an appropriate funding
solution.
As part of its plan to restructure its
convertible note and strengthen its balance sheet, the Company has
entered into a standstill agreement with BEP Special Situations IV,
LLC (“Lender”), its primary lender and the holder of the Company’s
senior secured convertible notes.
The standstill agreement will provide 5E with a
time extension to advance discussions with several parties to
achieve a successful funding resolution for its next phase of
growth as it works judiciously to finalize its permit obligations.
Under the standstill agreement, the agreement allows the Company to
go below its current cash covenant until December 1, 2023.
The Company is committed to protecting the
interests of its stakeholders and is working diligently to
negotiate and deliver a capital structure to better position the
Company to commence operations. In connection with these efforts,
the Company has retained Province to advise in achieving a
successful restructure of its debt. Province has extensive
experience and a proven track record of advising companies and
boards through restructuring of debt instruments.
“A successful restructure of our convertible
notes, combined with an approval from the EPA certifying compliance
with all permit conditions and the granting of authorization to
commence operations to extract boron and lithium, will enable us to
advance operations and growth ahead,” said Susan Brennan, Chief
Executive Officer of 5E Advanced Materials. “The standstill
agreement provides the time and opportunity to achieve a successful
outcome.”
About 5E Advanced Materials,
Inc.
5E Advanced Materials, Inc. (Nasdaq: FEAM) (ASX:
5EA) is focused on becoming a vertically integrated global leader
and supplier of boron specialty and advanced materials,
complemented by lithium co-product production. The Company’s
mission is to become a supplier of these critical materials to
industries addressing global decarbonization, food and domestic
security. Boron and lithium products will target applications in
the fields of electric transportation, clean energy infrastructure,
such as solar and wind power, fertilizers, and domestic security.
The business strategy and objectives are to develop capabilities
ranging from upstream extraction and product sales of boric acid,
lithium carbonate and potentially other co-products, to downstream
boron advanced material processing and development. The business is
based on our large domestic boron and lithium resource, which is
located in Southern California and designated as Critical
Infrastructure by the Department of Homeland Security’s
Cybersecurity and Infrastructure Security Agency.
Forward Looking Statements and
Disclosures
This press release includes “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995, as amended. All statements other than
statements of historical fact included in this press release
regarding our business strategy, plans, goal, and objectives are
forward-looking statements. When used in this press release, the
words “believe,” “project,” “expect,” “anticipate,” “estimate,”
“intend,” “budget,” “target,” “aim,” “strategy,” “estimate,”
“plan,” “guidance,” “outlook,” “intent,” “may,” “should,” “could,”
“will,” “would,” “will be,” “will continue,” “will likely result,”
and similar expressions are intended to identify forward-looking
statements, although not all forward-looking statements contain
such identifying words. These forward-looking statements are based
on 5E’s current expectations and assumptions about future events
and are based on currently available information as to the outcome
and timing of future events. We caution you that these
forward-looking statements are subject to all of the risks and
uncertainties, most of which are difficult to predict and many of
which are beyond our control, incident to the extraction of the
critical materials we intend to produce and advanced materials
production and development. These risks include, but are not
limited to: our limited operating history in the borates and
lithium industries and no revenue from our proposed extraction
operations at our properties; our need for substantial additional
financing to execute our business plan and our ability to access
capital and the financial markets; our status as an exploration
stage company dependant on a single project with no known
Regulation S-K 1300 mineral reserves and the inherent uncertainty
in estimates of mineral resources; our lack of history in mineral
production and the significant risks associated with achieving our
business strategies, including our downstream processing ambitions;
our incurrence of significant net operating losses to date and
plans to incur continued losses for the foreseeable future; risks
and uncertainties relating to the development of the Fort Cady
project, including our ability to timely and successfully complete
our Small Scale Boron Facility; our ability to obtain, maintain and
renew required governmental permits for our development activities,
including satisfying all mandated conditions to any such permits;
our ability to timely and successfully implement a recapitalization
plan; and other risks. Should one or more of these risks or
uncertainties occur, or should underlying assumptions prove
incorrect, our actual results and plans could differ materially
from those expressed in any forward-looking statements. No
representation or warranty (express or implied) is made as to, and
no reliance should be place on, any information, including
projections, estimates, targets, and opinions contained herein, and
no liability whatsoever is accepted as to any errors, omissions, or
misstatements contained herein. You are cautioned not to place
undue reliance on any forward-looking statements, which speak only
as to the date of this press release.
For additional information regarding these
various factors, you should carefully review the risk factors and
other disclosures in the Company’s Form 10-K filed on August 30,
2023. Additional risks are also disclosed by 5E in its filings with
the U.S. Securities and Exchange Commission throughout the year,
including its Form 10-K, Form 10-Qs and Form 8-Ks, as well as in
its filings under the Australian Securities Exchange. Any
forward-looking statements are given only as of the date hereof.
Except as required by law, 5E expressly disclaims any obligation to
update or revise any such forward-looking statements. Additionally,
5E undertakes no obligation to comment on third party analyses or
statements regarding 5E’s actual or expected financial or operating
results or its securities.
For further information contact:
Davis Snyder or Joseph CaminitiAlpha IR GroupFEAM@alpha-ir.comPh:
+1 (312) 445-2870 |
J.T. StarzeckiChief Marketing
Officerjstarzecki@5eadvancedmaterials.comPh: +1 (612) 719-5076 |
5E Advanced Materials (NASDAQ:FEAM)
과거 데이터 주식 차트
부터 4월(4) 2024 으로 5월(5) 2024
5E Advanced Materials (NASDAQ:FEAM)
과거 데이터 주식 차트
부터 5월(5) 2023 으로 5월(5) 2024