Company: FEAV
Filing Date: 2025-01-17
Form Type: DEFA14A
Source: 0000950170-25-006729
Chunk: 4

Company: 5E Advanced Materials, Inc.
Filing Date: 2025-01-17
Form: DEFA14A
Chunk 4
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 equity; that equity price will be struck at the conversion price or approximately 29 cents or the lower of five day VWAP or volume weighted average price post equitization; lenders will receive one year warrants to purchase a number of shares of common stock with a value equal to an aggregate of 20 million.

And then Ascend and Bluescape will each have a right to nominate two directors to the company's board, which will be trimmed down to four on a go forward basis. So with that, that kind of summary summarizes the, the high level terms of the transaction, and I'll kind of pass it back off to Romeo here to kind of run through some Q and A.

Question and Answer

Romeo Maione

6ix

Appreciate that very much, Paul. So I'm going to go through some questions. As a reminder, especially the folks who joined a bit late, that, um, you can enter questions in the chat box at the bottom right of your screen at any point during today's presentation. So I'll start first off, and look, this was reflected in a few of the questions that were submitted via email.

Um, how did you arrive at 80%, Paul?

Paul Weibel

CEO

Yeah, and I think it's, give or take, dependent on time and conversion. I think before it was approximately 79 and change, and then with the equity it kind of ticks up to 81%. It depends if you're looking at it on a fully dilutive or, or non-diluted basis, but what I think needs to be noted, and Graham spoke to some of this, is that we did test the equity markets on three different occasions in 2024.

And if you look back and what was the result of that, we brought in 4 million of equity. And at each time we had to go back to the note holders and we raised them 17 million in convertible debt. And each time we went to the market,

the feedback was adamantly consistent. Yes, you're operationally excelling and you're progressing the business forward, but, those notes, they're a problem and, and they’re an overhead hang.

And so given that structure and the feedback we received on three different occasions, lenders were essentially becoming the majority of the financial support and that needed to change. And so with an equitization, what that solves for is ultimately a healthy and investable capital structure where those two lenders are going to forego their priority on