Company: FEAV
Filing Date: 2025-01-14
Form Type: 8-K
Source: 0000950170-25-005373
Chunk: 3

Company: 5E Advanced Materials, Inc.
Filing Date: 2025-01-14
Form: 8-K
Item: Item 1.01
Chunk 3
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The Conversion Rate for the January 2025 Notes is subject to adjustment in accordance with the terms of the Amended and Restated Note Purchase Agreement, including in connection with certain change of control transactions or other events specified in the Amended and Restated Note Purchase Agreement (a “ Make-Whole Fundamental Change”). Based on the timing of a Make-Whole Fundamental Change and the trading price of the Common Stock at such time or the cash received by holders of the Common Stock in connection therewith, as applicable, the Conversion Rate of the January 2025 Notes will be increased by up to 1,424.5016 additional shares of Common Stock per $1,000 principal amount of January 2025 Notes upon the occurrence of a Make-Whole Fundamental Change, provided, however, that no shares of Common Stock will be issuable that would require approval of the Company’s stockholders under the applicable listing rules of Nasdaq, prior to such approval being obtained.

The Note Purchase Agreement includes customary affirmative and negative covenants relating to the Company, including a covenant requiring that the Company have at least $7.5 million in cash at all times after March 31, 2025. The Notes are secured by substantially all of the Company’s assets and mature on August 15, 2028.

As noted above, all Notes (including the January 2025 Notes) will be exchanged in the Exchange as part of the Transaction, if consummated.

The foregoing summary of the Notes is qualified in its entirety by reference to the full text of the Amended and Restated Note Purchase Agreement, including the form of Note attached as Exhibit E thereto, which is incorporated herein by reference as Exhibit 10.6.

The agreements summarized above in this Item 1.01 contain customary representations, warranties and covenants, and indemnification and other obligations of the parties thereto. The representations, warranties and covenants were made only for purposes of such agreements and as of specific dates and may be subject to limitations agreed upon by the contracting parties. In addition, the representations and warranties were made for purposes of allocating risk among the parties to such agreements and were not intended, and should not be relied upon, as statements of fact.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.