10:56 AM EDT, 08/26/2024 (MT Newswires) -- 5E Advanced Materials ( FEAM ) said Monday it will raise about $4 million in gross proceeds from the sale of shares and warrants in a registered direct offering and a concurrent private placement, respectively, and $6 million from a private placement of senior secured convertible notes.

The company said it will sell 5.3 million shares to a single institutional investor at $0.75 a piece in the offering, along with series A and series B warrants to purchase the same number of shares.

The warrants can be exercised six months from the issue date at $0.7981 a share, according to 5E. The series A and series B warrants will expire on the five and one half-year and two and one half-year anniversary, respectively.

Additionally, the company said in a regulatory filing that it entered into debt commitment letters with BEP Special Situations IV and Ascend Global Investment Fund for $3 million each of the company's secured convertible promissory notes maturing in August 2028.

The company said it expects to close the direct offering on or about Tuesday and the private placement of notes in September.

5E shares fell 7.3% in recent trading.

Price: 0.74, Change: -0.06, Percent Change: -7.27