Company: FEAV
Filing Date: 2025-01-24
Form Type: PRE 14A
Source: 0000950170-25-008828
Chunk: 21

Company: 5E Advanced Materials, Inc.
Filing Date: 2025-01-24
Form: PRE 14A
Chunk 21
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 $20.0 million divided by the Subscription Price, at a price per share equal to the Subscription Price; the Warrants will be exercisable at any time after the Exchange and expire on the one-year anniversary of the Exchange; and

pursuant to an amended and restated investor and registration rights agreement dated January 14, 2025 between us and the Noteholders that is attached as an exhibit to the Restructuring Support Agreement (the “Registration Rights Agreement”), following the consummation of the out-of-court process, Ascend and Bluescape shall each have the right to designate two directors to serve on our Board for so long as such party beneficially owns 25% of our Common Stock and each have the right to designate one director to serve on our Board for so long as such party beneficially owns 10% of our Common Stock.

Board Designation Rights

If the out-of-court process is implemented, we expect Paul Weibel will resign from our Board, Bluescape will designate Graham van’t Hoff to continue to serve as one of its designees on our Board and Curt Hebert for appointment to our Board, and Ascend will designate Barry Dick and Bryn Jones to continue to serve on our Board as its designees.

Proposed Increase to Authorized Shares Under Equity Plan

As part of the proposed out-of-court process, we are seeking approval from our stockholders to increase the number of shares authorized under the 5E Advanced Materials, Inc. 2022 Equity Compensation Plan (the “Equity Plan”) by 14,000,000 shares of our Common Stock. See “Proposal Two – The Equity Plan Proposal”. This increase is contemplated by the terms of the Restructuring Support Agreement, and we believe is critical to retain critical employees and executives following the successful

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implementation of the out-of-court process and to position us to progress to the Final Investment Decisions after the completion of commercial engineering.

Compliance with Nasdaq Listing Rules

As previously disclosed, on November 20, 2024, we received written notice from Nasdaq that we were not in compliance with the minimum stockholders’ equity requirement set forth in Nasdaq Listing Rule 5450(b)(1), which requires companies listed on the Nasdaq Global Select Market to maintain a minimum of $10.0 million in stockholders’ equity for continued listing (the “Stockholders’ Equity Rule”). We reported stockholders’ equity of $2.1 million as of September 30,