Comstock Inc. announced on September 19, 2024, an additional convertible debt financing of $3.5 million, with an option for an extra $1.5 million. This move aims to provide liquidity and capacity to accelerate commercial transaction execution in its fuels and metals segments. The company also confirmed that the remainder of its convertible debt has been either converted, redeemed, or extinguished.
The company also disclosed an indicative term sheet for $325 million in gross funding through SBCC Commerce LLC, a private equity group. This funding is earmarked for significant investments, including $200 million for Comstock Fuels, $22 million for Comstock Metals, and $50 million for the Comstock Mining segment, alongside $50 million from real estate and water rights sales.
Management estimates these transactions recognize nearly $500 million in valuations for the company's three businesses, positioning essential growth capital to accelerate commercialization. The company structured the $3.5 million debt with higher, near-term conversion premiums and full redemption rights to minimize dilution, reflecting a thoughtful approach to capital management.
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