Company: FEAV
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0000950170-25-019943
Chunk: 102

Company: 5E Advanced Materials, Inc.
Filing Date: 2025-02-13
Form: 10-Q
Item: Item 1
Chunk 102
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,317,039 shares of Common Stock (including principal and accrued interest paid-in-kind until maturity) and may be convertible into a maximum of an additional 10,113,955 Additional Shares upon the occurrence of a Make-Whole Fundamental Change.

If the Out-of-Court Restructuring transaction is consummated (refer to Recent Developments – Restructuring Support Agreement and Related Agreements above), the Convertible Notes, including accrued interest thereon, will be exchanged for 312,490,076 shares of our Common Stock, and all related rights and obligations (other than with respect to expense and reimbursement or indemnification obligations under the Amended and Restated Note Purchase Agreement, or obligations that expressly survive the termination of the Amended and Restated Note Purchase Agreement) will be extinguished. 

Restructuring Support Agreement and Related Agreements

Refer to the discussion above under the caption Recent Developments – Restructuring Support Agreement and Related Agreements for a description of the restructuring support agreement we entered into during January 2025, and the potential related impacts of such agreements.

Equity Offerings

On August 27, 2024, we completed the August 2024 Equity Offering of (i) 5,333,333 Shares of Common Stock, (ii) Series A Warrants to purchase up to an aggregate of up to 5,333,333 shares of Common Stock, and (iii) Series B Warrants to purchase an aggregate of 5,333,333 shares of Common Stock. The Shares and Warrants were offered and sold on a combined basis for consideration equating to $0.75 for one Share and two Warrants. 

The Series A Warrants and the Series B Warrants are initially exercisable on February 27, 2025. The Series A Warrants will expire on February 27, 2030 and the Series B Warrants will expire on February 27, 2027. The Warrants contain standard adjustments to the exercise price including for stock splits, stock dividends, rights offerings and pro rata distributions. The Warrants also include certain rights upon the occurrence of a “fundamental transaction” (as described in the Warrants), including the right of the holder thereof to receive from the Company or a successor entity the same type or form of consideration (and in the same proportion) that is being offered and paid to the holders of Common Stock in such fundamental transaction in the amount of the Black Scholes value (as described in the Warrants) of the un