Company: FEAV
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0000950170-25-019943
Chunk: 15

Company: 5E Advanced Materials, Inc.
Filing Date: 2025-02-13
Form: 10-Q
Item: Item 8
Chunk 15
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 fundamental transaction. The Warrants include cashless exercise rights to the extent the resale of the shares of Common Stock underlying the Warrants is not registered under the Securities Act.Vesting of Equity AwardsDuring the three months ended December 31, 2024 and 2023, the Company issued approximately 8 thousand shares and zero shares of its Common Stock upon the vesting of equity awards, respectively. During the six months ended December 31, 2024 and 2023, the Company issued approximately 240 thousand shares and 50 thousand shares of its Common Stock upon the vesting of equity awards, respectively. The vesting events did not result in any cash proceeds to the Company.2024 Equity Distribution AgreementOn March 28, 2024, the Company entered into an equity distribution agreement (the “Equity Distribution Agreement”) with Canaccord Genuity LLC and D.A. Davidson & Co. (the “Agents”) pursuant to which the Company may offer and sell up to $15.0 million of shares of Common Stock from time to time through the Agents, acting as the Company’s sales agents, or directly to one or more of the Agents, acting as principal (the “ATM Program”).Neither of the Agents is required to sell any specific number or dollar amount of shares of the Company’s Common Stock, but each has agreed, subject to the terms and conditions of the Equity Distribution Agreement, to use its commercially reasonable efforts, consistent with its normal trading and sales practices, to sell the shares of Common Stock on the terms agreed upon by such Agent and the Company.The Company did not sell any shares of Common Stock nor receive any proceeds under the Equity Distribution Agreement during the three and six months ended December 31, 2024. As a result of the August 2024 Equity Offering, the Company is precluded from utilizing the ATM Program for one year following the closing of the offering, and as a result approximately $410 thousand of costs previously capitalized for the ATM Program were written-off to General and administrative expense during the three months ended December 31, 2024.Out-of-Court RestructuringAs discussed in Note 1-Basis of Financial Statement Presentation, the proposed Out-of-Court Restructuring could result in (i) the issuance of 312,490,076 shares of Common Stock upon the exchange of the Convertible Notes, (ii) the issuance of an aggregate $5.0

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 million of Common Stock at the Subscription Price, and (iii) the issuance of Restruct