5E Advanced Materials Secures $30 Million Funding and Restructures Convertible Notes

5E Advanced Materials, Inc. has announced a restructuring agreement aimed at enhancing its balance sheet with a $30 million funding package. The agreement involves key lenders, including Ascend Global Investment Fund SPC, Bluescape Special Situations IV LLC, and Meridian Investments Corporation. The transaction proposes the full equitization of all senior secured convertible notes, issuing over 312 million shares of common stock to lenders.

Subject to shareholder approval, the lenders will purchase an additional $5 million of common stock. They will also receive one-year warrants to purchase further shares, potentially worth $20 million. Post-restructuring, Ascend and BEP will nominate two directors each to the company's board.

CEO Paul Weibel believes the agreement will support 5E's transformation into a leading boric acid and boron advanced materials producer. The special stockholders meeting, anticipated in early 2025, will be crucial for the transaction's completion.