Company: FEAV
Filing Date: 2025-02-03
Form Type: DEF 14A
Source: 0000950170-25-012391
Chunk: 22

Company: 5E Advanced Materials, Inc.
Filing Date: 2025-02-03
Form: DEF 14A
Chunk 22
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 of September 30, 2024 in our Quarterly Report on Form 10-Q for the period ended September 30, 2024. As of September 30, 2024, we had $81.1 million in aggregate principal amount of Notes outstanding, which was recorded as a liability in long-term debt, net on our balance sheet.

We submitted a compliance plan on January 6, 2025 outlining our plan to regain compliance with the Stockholders’ Equity Rule, which was approved by Nasdaq on January 10, 2025. Nasdaq has provided us with an extension to May 19, 2025 to evidence compliance with the Stockholders’ Equity Rule.

We believe the successful completion of the out-of-court process is critical to regaining compliance with the Stockholders’ Equity Rule. If the out-of-court process, including the Exchange had taken place as of September 30, 2024, we estimate our stockholders’ equity as of September 30, 2024 would have been greater than $10 million, which would be compliant with the Stockholders’ Equity Rule.

In addition to the Stockholders’ Equity Rule, as previously disclosed, we previously received written notice from Nasdaq that, for a period of at least 30 consecutive business days, the closing bid price of the Common Stock was below the $1.00 per share minimum bid price requirement for continued inclusion on The Nasdaq Global Select Market pursuant to Nasdaq Listing Rule 5450(a)(1) (the “Minimum Bid Price Requirement”). On January 21, 2025, our stockholders approved an amendment to our Amended and Restated Certificate of Incorporation to effect a reverse stock split of the Common Stock at a ratio ranging from any whole number between 1-for-10 and 1-for-25, as determined by our Board. The reverse stock split has not yet been effected by us, but we intend to do so as needed in order to regain compliance with the Minimum Bid Price Requirement prior to the deadline of March 11, 2025.

There can be no assurances that the proposed reverse stock split or the successful implementation of the out-of-court process will result in us regaining compliance with the Minimum Bid Price Requirement or the Stockholders’ Equity Rule or that we will remain in compliance with other applicable Nasdaq listing standards.

Effect on Existing Stockholders

Based on share information as of January 23, 2025, the Notes are currently convertible into an aggregate of 72,605,008 shares