Electra Battery Materials Corporation announced on August 21, 2025, that it has entered into a term sheet and transaction support agreement with its lenders for a comprehensive financial restructuring. This plan includes a debt-to-equity conversion that will reduce its convertible debt outstanding by 60%.
Approximately US$40 million of outstanding notes will be converted into equity at an exchange price of US$0.60 per share, reducing total debt under the notes to about US$27 million. The remaining 40% of the notes will be exchanged for an equal aggregate principal amount of a new three-year term loan.
Additionally, Electra intends to launch a US$30 million equity financing, which includes a US$10 million conditional commitment from the lenders, at a price of US$0.75 per unit. The lenders also purchased US$2 million in unsecured 90-day 12.00% promissory notes to fund working capital during the restructuring process.
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