Following the news, the company’s stock jumped 21% to $0.13 a share in New York.
In a statement, CEO Doug Cole said the Nevada battery recycling and production company got the commitment for the equity financing from Newood Finance Solutions Limited, a Fiji corporation doing business as Unifinance Limited, which is an affiliate of VCM Group Pty Limited, American Battery Metals’ Engineering, Procurement, and Construction (EPC) partner.
The investment is in the form of a purchase of American Battery Metals’ Series B preferred stock, which is convertible into common stock at a fixed price of $0.25 per share. And Unifinance has irrevocably committed to fund the entire amount of the investment prior to April 19, Cole said.
The company intends to use the investment proceeds to eliminate a portion of its convertible debt, construction of a new, scalable battery recycling plant in Nevada, (which is scheduled to be fully operational in late 2020), and general working capital needs.
"This strategic investment is a major step toward attaining the company's goals of eliminating approximately $2.5 million of convertible notes, gaining profitability, a healthier balance sheet and uplisting to a major exchange in 2020. Elimination of outstanding convertible debt shall allow the stock to trade on its own merits," Cole said.
VCM Director Michael Vogel commented: "We are truly pleased to partner with American Battery Metals Corporation, not just because it is a fast-moving, leading-edge technology company, but also because we are excited to be a part of the accelerated development of the company's lithium-ion battery recycling facility. The American Battery Metals Corporation recycling process will address a global e-waste challenge, while reintroducing critically-needed materials back into the supply chain for the electric vehicle and energy storage sectors."
With this new funding commitment, American Battery Metals said it is well-positioned to pursue its main areas of focus — lithium-ion battery recycling and its advanced extraction technology.
The company has assembled a talented team with vast experience in battery metals, state-of-the-art recycling technology, extraction, and resource permitting.
The VCM sourced funding provides important resources to realize American Battery Metals Corporation's vision of becoming the world's first fully integrated battery metals supply chain provider, the company added.
Headquartered in Incline Village, Nevada, American Battery Metals is a lithium resource exploration and development company, which operates a mining project in the state’s Railroad Valley. The company’s goal is to become a top supplier of battery metals to America’s electric vehicles and battery storage markets and also to develop an effective battery recycling program.
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