American Battery Metals Corporation (OTCMKTS:ABML) has closed an initial tranche of more than $1 million in a private placement for insiders, friends and family designed to pay off convertible debt notes.
"This fixed price common equity financing demonstrates the enthusiasm and support our insiders and friends and family have in our company,” CEO Doug Cole said in a statement. “We used a portion of the proceeds to pay off additional convertible notes. These notes were due to recently mature and become convertible into common stock.”
The board of directors has agreed to extend the offering until April 30.
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“We realize the negative effects these conversions could have on the dilution of our stock and downward pressure on its price," Cole said. "Thus, we have repaid and satisfied these convertible notes in order to avoid any further potential equity dilution. We continue to push forward with our $10 million strategic investment infusion with the expected timing of the full funding by April 19, 2020."
The $10 million investment is from Newood Finance Solutions Limited, a corporation in Fiji doing business as Unifinance Limited which is an affiliate of VCM Group Pty Limited, American Battery Metals’ engineering, procurement and construction partner.
The funding allows American Battery Metals to pursue lithium-ion battery recycling and its advanced extraction technology.
American Battery Metals is an advanced extraction and battery recycling technology company with valuable mineral resources in Nevada. The company is focused on its lithium-ion battery recycling and resource production projects in the state, with the goal of becoming a substantial domestic supplier of battery metals to the rapidly growing electric vehicle and battery storage markets.
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