Company: FEAV
Filing Date: 2025-01-17
Form Type: DEFA14A
Source: 0000950170-25-006729
Chunk: 9

Company: 5E Advanced Materials, Inc.
Filing Date: 2025-01-17
Form: DEFA14A
Chunk 9
---

CEO

Yeah. So, okay. And I've gotten one offs, whethe just calls or emails on this for, and this ties directly to the NASDAQ efficiency. So there's two rules. One, you need to maintain a dollar stock.

There's kinds of exemptions. You get six month periods to kind of work through that. Two, is that tour book value of equity essentially is below 10 million and that's an accounting mechanism, but NASDAQ requires it to be above 10 million and there's kind of nuances of why we got there.

Some of our like crazy debt restructure and we had a loss last year because of the restructure and well, we're depreciating the small scale facility kind of over a smaller period because what we plan on building a much larger commercial facility. So all this kind of complicates into, well, you know, you have a NASDAQ deficiency, kind of couple storms colliding.

We have a proxy statement that is scheduling our annual meeting on January 21st. On that proxy, there's a proposal for a reverse split to maintain NASDAQ compliance. I wasn't bearing on any unforeseen changes. I anticipate that proposal will get passed and then essentially the board can effectuate the reverse split in a few weeks.

And I think the range is like 13 to 1 and maybe 25 to 1. Don't hold me to it, but there's a range and that final ratio is to be determined. And then additionally, a successful, there'll be another vote and a special meeting that essentially has, if it's a favorable vote, no, it's equitized.

And right now you have a big liability that will go into equity. And that satisfies the other NASDAQ deficiency. And we would maintain the minimum book value deficiency there. So there's solutions now proposed and at the table for what we hope will solve what we think will solve both deficiencies.

Romeo Maione

6ix

Okay. Post transaction, will 5E need any additional capital raises just to keep the company solvent?

Paul Weibel

CEO

Listen, I think this transaction provides the means and mechanisms to get us to FID. And so, yeah, there's going to be an additional capital needed. And I think I'm hopeful and I'm excited to really kick off the process here with XM for the debt facility, additionally talk to multiple private equity funds about the royalty.

And I think, that continues to be assessed. And so I think those