11:38 AM EDT, 08/21/2025 (MT Newswires) -- Electra Battery Materials ( ELBM ) down 16% on last look, on Thursday said it sealed a deal with its lenders to convert US$40 million of its outstanding notes into shares at US$0.60 per share, slashing its outstanding convertible debt by 60% to US$27 million.

The remaining 40% of the notes will be exchanged for a new three-year term loan.

Electra will also launch a US$30 million financing of units priced at US$0.75 each, which will include a US$10 million conditional commitment from the lenders. Each unit will consist of a share and a three-year warrant to buy a share at US$1.25.

To support operations during the restructuring process, the lenders are providing US$2 million in the form of 90-day bridge notes, a statement said.

When the financial restructuring is completed, Electra will increase its board size from five to seven, with the lenders gaining the right to appoint up to three members.

"This restructuring is undeniably dilutive and difficult for existing shareholders, but it is both timely and necessary. We have rigorously explored the alternatives, including asset sales, mergers, and alternative financing structures, and none offered a preferable outcome," said Chief Executive Trent Mell. "The lenders have provided continued support since construction of Electra's refinery was paused due to post-COVID inflation and supply chain disruption, including through new debt funding, equity commitments, and multiple waivers or amendments to loan conditions. This transaction preserves the value of our core asset and provides the foundation for future growth."

Electra was last seen down $0.24 to $1.22 on the TSX Venture Exchange.

Price: 1.22, Change: -0.24, Percent Change: -16.44