REG - Technology Minerals - £5.5 million Fundraise

Technology MineralsAnnouncement

21/03/2024 07:00

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RNS Number : 7000H  Technology Minerals PLC  21 March 2024

The information contained within this announcement is deemed to constitute
inside information as stipulated under the retained EU law version of the
Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK
law by virtue of the European Union (Withdrawal) Act 2018. The information is
disclosed in accordance with the Company's obligations under Article 17 of the
UK MAR. Upon the publication of this announcement, this inside information is
now considered to be in the public domain.

 

 

21 March 2024

 

Technology Minerals Plc

("Technology Minerals" or the "Company")

 

£5.5 million Fundraise

 

Technology Minerals Plc (LSE: TM1), the first listed UK company focused on
creating a sustainable circular economy for battery metals, is pleased to
announce that it has entered into a £5.5 million convertible bond facility
(before expenses) with Atlas Capital Markets ("ACM") (the "Facility"). The
Facility is expected to be drawn in five tranches of which the draw down of
the first tranche of £1.5 million has been initiated.

 

Details of the Facility

 

Under the terms of the Facility, ACM will provide a £5.5 million convertible
bond with a coupon of 5% per annum over Bank of England base rate via its
investment vehicle Atlas special opportunities llc 2.

 

The Facility is expected to be drawn in five tranches, the first one being in
the amount of £1.5 million followed by four tranches of £1.0 million as
required. ACM will purchase the convertible bonds at a fixed price equal to
95% of the principal amount. The Company shall pay to ACM a transaction fee in
aggregate equal to 3% of the total commitment in two instalments. The first
instalment of the transaction fee will be deducted from the first tranche of
£1.5 million.

 

In addition, warrants amounting to 20% of each tranche of convertible bonds
will be attached to each tranche plus a premium of twenty (20) percent of the
principal amount of convertible bonds that are issued. The warrants will have
a strike price fixed at twenty (20) percent premium to the average Volume
Weighted Average Price of the Shares for the 5 consecutive days immediately
prior to the issue date of each warrant. The warrants will expire two years
after issuance.

 

Update on CLG Convertible Bond Facility

 

The Company provides the following update regarding the £5.0 million
convertible bond facility with CLG Capital LLC ("CLG") announced on 8 January
2024 ("CLG Facility"). Under the terms of the CLG Facility, Technology
Minerals initiated drawdown of £1.0 million, as announced on 23 January 2024
and issued warrants to CLG in accordance with the agreed terms. While a
portion of the funds was received by the Company, CLG failed to provide
£400,000 of the total amount of £1.0 million. The number of warrants issued
to CLG under the facility is being adjusted accordingly. While the Company
remains in discussions to resolve the issue, it has commenced termination of
its arrangement with CLG and will not draw down any further funds from the CLG
Facility.

 

Alex Stanbury, CEO of Technology Minerals, said: "We are pleased to secure
replacement funding facility and look forward to working with ACM. The funds
will provide us with sufficient capital to progress the acquisition of
Recyclus, and to ramp up operations at our lithium-ion battery recycling plant
in Wolverhampton."

 

Mustapha Raddi, Managing Partner of ACM, said: "We are thrilled to embark on
this journey with Technology Minerals as a funding partner to provide capital
for the final steps towards the acquisition of Recyclus. We believe that our
credit line will enable the company to establish a solid foundation for future
cash flow."

 

Enquiries

 

 Technology Minerals Plc
 Robin Brundle, Executive Chairman             c/o +44 (0)20 4582 3500

 Alexander Stanbury, Chief Executive Officer

 Oberon Investments Limited
 Nick Lovering, Adam Pollock                   +44 (0)20 3179 0535

 Gracechurch Group
 Harry Chathli, Alexis Gore, Rebecca Scott     +44 (0)20 4582 3500

 

Technology Minerals Plc

 

Technology Minerals is developing the UK's first listed, sustainable circular
economy for battery metals, using cutting-edge technology to recycle, recover,
and re-use battery technologies for a renewable energy future. The Company
currently holds 48.35% of the issued share capital of Recyclus Group Ltd, the
UK's first industrial-scale recycler of both lithium-ion and lead batteries.

 

Technology Minerals is focused on raw material exploration required for Li-ion
batteries, whilst solving the ecological issue of spent Li-ion batteries, by
recycling them for re-use by battery manufacturers. Further information on
Technology Minerals is available at  www.technologyminerals.co.uk
(http://www.technologyminerals.co.uk) .   

 

 

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