American Battery Technology Company Enters into Agreement for $12 Million Senior Secured Convertible Notes

American Battery Technology Company recently announced that it has entered into an agreement to issue senior secured convertible notes to High Trail Investments ON LLC and High Trail Special Situations LLC (together referred to as the “Buyers”) for a total principal amount of $12,000,000. The notes, which bear zero coupon, mature on September 1, 2025, and are secured by specific assets of the Company, including real property, cash, and investment accounts.

The terms of the new notes, as amended on November 14, 2024, under the existing securities purchase agreement, include modifications to the interest rate, initial conversion rate, collateral, prepayment events, covenants, and liquidity requirements. Buyers have the option to request partial redemptions of up to $1,000,000 monthly starting from January 1, 2025, or convert the notes into common stock of the Company at specified conversion rates.

These details were disclosed through a Form 8-K filing with the Securities and Exchange Commission. A.G.P./Alliance Global Partners acted as the sole placement agent for the financing. The full terms and conditions of the notes can be found in the filing, and additional information will be included in the Company’s Quarterly Report on Form 10-Q for the quarter ending December 31, 2024.

Additionally, the Company mentioned its plans to offer and sell the notes to accredited investors, including the Buyers, under an exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933. It was specified that neither the notes nor the conversion shares have been registered under the Securities Act and may not be offered or sold in the United States without registration or an applicable exemption.

The Company has also agreed to register the conversion shares for resale, ensuring compliance with applicable regulations. These developments indicate a strategic financial move by American Battery Technology Company, aiming to strengthen its financial position and enhance liquidity. Investors and stakeholders will likely keep a close watch on how this agreement unfolds in the coming months.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read American Battery Technology’s 8K filing here.

About American Battery Technology

American Battery Technology Company, a battery materials company, engages in supplying battery metals. The company explores for resources of battery metals; and develops and commercializes technologies for the extraction of battery metals, as well as commercializes integrated process for the recycling of lithium-ion batteries.