Company: FEAV
Filing Date: 2025-01-24
Form Type: PRE 14A
Source: 0000950170-25-008828
Chunk: 20

Company: 5E Advanced Materials, Inc.
Filing Date: 2025-01-24
Form: PRE 14A
Chunk 20
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 Alter Domus (US) LLC, as collateral agent. This transaction is a crucial step to strengthen and simplify our balance sheet, support compliance with applicable Nasdaq listing rules and maintain the listing of our Common Stock on Nasdaq, fund our next phase of development, and ultimately construct and operate the proposed commercial-scale facility to produce boric acid.

Summary

On January 14, 2025, we entered into a restructuring support agreement (the “Restructuring Support Agreement”), with the Noteholders. The Restructuring Support Agreement is attached hereto as Appendix C. Pursuant to the terms of the Restructuring Support Agreement, we will implement the restructuring through either:

an out-of-court restructuring and recapitalization transaction (the “out-of-court process”); or

to the extent the conditions precedent to consummating the out-of-court process cannot be timely satisfied, including approval of the Share Issuance Proposal and the Equity Plan Proposal, then as voluntary pre-packaged cases (the “Chapter 11 Cases”) under chapter 11 of title 11 of the United States Code to be filed in a United States Bankruptcy Court of competent jurisdiction pursuant to a pre-packaged plan of reorganization (the “Pre-Packaged Chapter 11 Plan”).

The proposed out-of-court process is comprised of, but not limited to, the following:

pursuant to an exchange agreement dated January 14, 2025 between us and the Noteholders that is attached as an exhibit to the Restructuring Support Agreement (the “Exchange Agreement”), the issuance of 312,490,076 shares of our Common Stock to the Noteholders upon exchange of all of the outstanding Notes (the “Exchange”);

pursuant to a securities subscription agreement dated January 14, 2025 between us and the Noteholders that is attached as an exhibit to the Restructuring Support Agreement (the “Subscription Agreement”), the issuance and sale by us of $5.0 million of Common Stock to the Noteholders at a price per share equal to the lesser of (a) $0.2920 per share (as adjusted for stock splits at the price per share described in this Proxy Statement) and (b) the volume weighted average price for the Common Stock on the five consecutive trading days immediately following the date of the Exchange (the “Subscription Price”);

pursuant to the Subscription Agreement, the issuance by us to the Noteholders of warrants (the “Warrants”) to purchase a number of shares of Common Stock represented by up to