Company: FEAV
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0000950170-25-019943
Chunk: 22

Company: 5E Advanced Materials, Inc.
Filing Date: 2025-02-13
Form: 10-Q
Item: Item 8
Chunk 22
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ing the counterclaims asserted by the contractor and reaffirming the grounds for recovery raised in the Complaint. Discovery has begun and is ongoing. An estimate of reasonably possible losses, if any, cannot be made at this time.

14. Subsequent EventsRestructuring Support Agreement and Related AgreementsAs further described in Note 1–Basis of Financial Statement Presentation and Note 10–Equity, on January 14, 2025, the Company entered into a Restructuring Support Agreement with Bluescape, Meridian and Ascend in connection with a restructuring and recapitalization transaction, including the Convertible Notes issued pursuant to the Amended and Restated Note Purchase Agreement by and among the Company, Bluescape, Ascend, the Guarantors from time to time party thereto and Alter Domus (US) LLC, as collateral agent. The Restructuring Support Agreement contemplates either an Out-of-Court Restructuring or In-Court Restructuring, the terms of which are described in further detail within Note 1–Basis of Financial Statement Presentation.January 2025 NotesAs further described in Note 7–Debt, on January 14, 2025, the Company entered into Amendment No. 4 to the January 2024 Amended and Restated Note Purchase Agreement and agreed, among other things, to (i) issue and sell new January 2025 Notes in substantially the same form and under the same terms as the September 2024 Notes, in an aggregate principal amount of $5.0 million to Bluescape, Ascend and Meridian, and (ii) amend and restate the January 2024 Amended and Restated Note Purchase Agreement in the form attached as Annex A to Amendment No. 4. Amendment No. 4 also extended the date to which the Company must comply with a financial covenant for the Company to maintain a cash balance of at least $7.5 million from December 31, 2024 to March 31, 2025. Reverse Stock SplitAs further described in Note 1–Basis of Financial Statement Presentation, on January 21, 2025, the Company’s stockholders approved amendments to the Company’s Amended and Restated Certificate of Incorporation to effect a reverse stock split of the Company’s Common Stock at a ratio ranging from any whole number between 1-for-10 and 1-for-25, with the exact ratio within such range to be determined by the Company’s Board in its discretion