American Battery Metals Corporation (OTCMKTS:ABML) is down 10% in a week. The company and a US-based institutional asset manager have announced an agreement to raise around $39.1 million through an oversubscribed direct offering closed at a 5.8% discount to American Battery Metal’s five-day weighted average volume.
The company indicated that it would use the proceeds of the offering in finding the development and commissioning of the 20,000 metric tonne battery recycling factory in Nevada. CEO Ryan Melsert said that they are delighted to announce the financing at a critical period in the development of the company.
The capital raised will fully fund the construction and the commissioning of the plant. The company issued around 25.4 million of its common shares and warrants at $1.54 per share in the direct offering. The warrants are exercisable at $1.75 per share and will be exercisable immediately with five-year expiry period from the day of issuance. With funding for the construction of the recycling plant secured, ABML is worth watching.
On Tuesday, ABML stock jumped 1.45% at $1.4000 with more than 1.29 million shares, compared to its average volume of 2.16 million shares. The stock has moved within a range of $1.3700 – 1.4100 after opening the trade at $1.3800.