The Metals Company Announces $17.5 Million Registered Direct Offering of Common Shares and Class B Warrants

TMC The Metals Company Inc. issued a current report on Form 8-K on November 14, 2024, announcing the entry into a securities purchase agreement for a registered direct offering of its common shares and Class B warrants. In the transaction, the company agreed to sell and issue a total of 17,500,000 common shares at a price of $1.00 per share, along with accompanying Class B Warrants to purchase up to 8,750,000 Common Shares. The aggregate gross proceeds from this Registered Offering are estimated to be around $17.5 million before deducting any related offering expenses, excluding the exercise of the Class B Warrants.

The Securities involved in this offering are being offered under the Company’s registration statement on Form S-3, previously filed with the U.S. Securities and Exchange Commission (SEC) on November 30, 2023. The Registered Offering is subject to customary closing conditions and is expected to close by November 22, 2024. The Class B Warrants have an initial exercise price of $2.00, are exercisable immediately, and are set to expire five years after issuance.

The Purchase Agreement includes various agreements and conditions, such as restrictions on the issuance of common shares below $1.00 per share for six months post the offering. The Company has also engaged financial advisors A.G.P./Alliance Global Partners for the offering.

The Company emphasized that this Current Report on Form 8-K does not serve as an offer to sell or a solicitation to buy the Securities in any jurisdiction where such actions might be deemed unlawful. Furthermore, included in the report were the legal opinions of Fasken Martineau DuMoulin LLP and Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C., as well as the relevant forms and documents related to the offering.

Additionally, a press release was issued by the Company on November 14, 2024, detailing the Registered Offering. The net proceeds from the offering are intended to be used for working capital and general corporate purposes. The Metals Company is an explorer of lower-impact battery metals sourced from seafloor polymetallic nodules and aims to play a key role in the global energy transition while minimizing negative environmental impacts.

Investors and interested parties are advised to review the prospectus supplement related to this offering for more comprehensive information. Regulatory and market conditions, as well as other risks disclosed in periodic reports and filings with the SEC, could impact the actual outcomes compared to the forward-looking statements mentioned in the announcement.

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

About TMC the metals

TMC the metals company Inc, a deep-sea minerals exploration company, focuses on the collection, processing, and refining of polymetallic nodules found on the seafloor in California. It primarily explores for nickel, cobalt, copper, and manganese products. The company holds exploration and commercial rights in three polymetallic nodule contract areas in the Clarion Clipperton Zone of the Pacific Ocean.