Company: FEAV
Filing Date: 2025-01-24
Form Type: PRE 14A
Source: 0000950170-25-008828
Chunk: 23

Company: 5E Advanced Materials, Inc.
Filing Date: 2025-01-24
Form: PRE 14A
Chunk 23
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15</div>

and funds of the Company available for distribution to stockholders in the event of any liquidation, dissolution or winding up of the affairs of the Company, whether voluntary or involuntary.

However, if our stockholders do not approve the Share Issuance Proposal or the Equity Plan Proposal at the Special Meeting, then we will commence the Chapter 11 Cases and seek approval to implement the Pre-Packaged Chapter 11 Plan. Under the Pre-Packaged Chapter 11 Plan, the equity interests of our stockholders will be extinguished in their entirety.

Our Board of Directors unanimously recommends that you vote “FOR” each of the FOUR Proposals.If THE SHARE ISSUANCE PROPOSAL or thE equity plan proposal IS not approved by OUR stockholders, we will implement the Pre-Packaged Chapter 11 Plan.YOUR VOTE IS IMPORTANT.

We believe that completing the out-of-court process will allow us 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, and avoid possible disruptions of our business, additional expenses, and other uncertainties that would result from commencing the Chapter 11 Cases.

The Chapter 11 Cases, even if completed in a timely manner, could have a material adverse effect on our business. Among other things, it is possible that the Chapter 11 Cases could adversely affect our relationships with our key vendors and other third parties. If we cannot maintain such relationships, our viability as a going concern will be threatened. In addition, a bankruptcy proceeding will (i) involve additional expenses, (ii) divert the attention of our management team from the operation of our business, and (iii) likely delay completion of the restructuring transactions contemplated herein.

The foregoing description of the Restructuring Support Agreement, the Exchange Agreement, the Subscription Agreement, the Registration Rights Agreement, the Warrants, the out-of-court process, the Pre-Packaged Chapter 11 Plan, and the other transactions contemplated thereby is not complete and is subject to, and qualified in its entirety by reference to, the full text of the Restructuring Support Agreement and its exhibits attached hereto as Appendix C.

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MATTERS TO BE CONSIDERED AT THE SPECIAL MEETING

PROPOSAL ONE— THE SHARE ISSUANCE PROPOSAL</div>

TO APPROVE, FOR PURPOSES OF COMPLYING WITH THE NASDAQ