First Cobalt Corp (TSXV: FCC) this morning indicated that it has closed on US$45 million in aggregate gross proceeds from a series of funding’s undertaken by the company this week. Funds were raised via a combination of senior secured notes and an overnight marketed offering.
The majority of the funding came from US based investors, where the firm managed to raise US$37.5 million in senior secured convertible notes that bear interest at a rate of 6.95% per annum. The debt comes due on December 1, 2026, and converts at a rate of 4,058.24 common shares per $1,000 in principal, equating to US$0.246 per common share, while representing total potential dilution of 152.2 million shares if the debt is fully converted.
The financing meanwhile saw a total of 38.2 million common shares sold in a financing lead by BMO Capital Markets. Priced at C$0.25 per share, the financing resulted in gross proceeds of C$9.5 million, or roughly US$7.5 million.
Funds raised under the financings are to be used to pay for equipment for the firms battery metals refinery located in Canada, which will initially produce battery grade cobalt before commencing battery recycling from lithium-ion batteries.
Following the close of the financing, the company also cancelled its outstanding at the market offering, effective September 2, 2021.
First Cobalt last traded at $0.295 on the TSX Venture.
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