Evolution Metals & Technologies Corp. (EMAT) has entered into a Securities Purchase Agreement with YA II PN, LTD., an affiliate of Yorkville Advisors, to issue and sell convertible debentures with an aggregate principal amount of $30,927,835. The financing will be provided in three tranches, with an initial $22 million issued at closing. Proceeds are intended for general corporate purposes, including operational expansion and development initiatives.
Key Details
- Financing Structure: The company will sell a total of $30.93 million in convertible debentures, purchased at 97% of the principal amount. The funding is structured in three parts: $22 million at closing, $2 million upon filing a registration statement, and $6.93 million upon its effectiveness.
- Debenture Terms: The debentures mature on September 17, 2028, and bear a 4.0% annual interest rate, which increases to 18.0% upon an event of default. The obligations are guaranteed by the company's subsidiaries.
- Conversion Price: The debentures are convertible into EMAT common stock at a price equal to the lower of (a) a fixed price of $5.02 per share or (b) 95% of the lowest daily volume-weighted average price (VWAP) over the five trading days preceding conversion, subject to a floor price of $0.76 per share.