First Cobalt sells $7.5 million more 6.95% convertibles due 2026

By Wendy Van Sickle

Columbus, Ohio, Oct. 22 – Holders of First Cobalt Corp.’s 6.95% convertible notes due 2026 purchased an additional $7.5 million of the notes, increasing the total issue size to $45 million, according to a company news release.

The original $37.5 million of the convertibles priced on Aug. 24 with an initial conversion premium of 125%, as previously reported.

Cantor Fitzgerald & Co. acted as placement agent for the offering.

If the company is given third-party green bond designation, interest on the notes will be reduced to 6.825%.

The notes are putable upon certain circumstances.

The notes are non-callable for three years and then subject to a 150% hurdle.

Concurrently with the convertible notes offering, the company priced a secondary equity offering at C$0.25 or $0.1971 per share for gross proceeds of C$9.5 million.

Proceeds will be used to finance the construction of its hydrometallurgical refinery in Ontario.

First Cobalt is a Toronto-based producer of battery materials.

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