Aqua Metals Executes $33 Million Non-Binding Loan Term Sheet with One of The World’s Largest Privately Held Companies
Aqua Metals (NASDAQ: AQMS) announced a non-binding term sheet for a $33 million secured credit facility with one of the world's largest privately held companies. The funding is aimed at completing Phase One of the Sierra ARC, a commercial lithium-ion battery recycling facility expected to be commissioned in 2024. Additionally, Aqua Metals announced a $7 million equity raise to support ongoing operations, expected to close on May 17, 2024. The term sheet's closing is targeted for June 30, 2024, pending due diligence and definitive agreements. This financing will help Aqua Metals advance its groundbreaking AquaRefining technology, which reduces waste and greenhouse gas emissions, contributing to a sustainable future.
- Secured a $33 million non-binding loan term sheet to complete Phase One of Sierra ARC.
- Announced a $7 million equity raise to support ongoing operations and strengthen the balance sheet.
- Phase One of Sierra ARC will recycle 3,000 tons per year of lithium-ion battery material, equivalent to 30,000 EV battery packs.
- The strategic financial collaboration comes after a thorough two-month review of Aqua Metals' financial health and technology.
- Partnership aligns with global sustainability goals by reducing CO2 emissions and eliminating sodium sulfate waste streams.
- The investment enables Aqua Metals to enhance operational capacity and advance its AquaRefining technology.
- The $33 million term sheet is non-binding and subject to further due diligence and negotiations, which could result in delays or changes.
- Equity raise may lead to shareholder dilution.
- The lender's name is withheld until the definitive loan agreement is executed, which may create uncertainty.
- Completion and commissioning of Phase One are contingent on securing the financing and meeting the lender's conditions.
Insights
Funding and Financial Position: Aqua Metals has announced a significant funding development with a non-binding term sheet for a $33 million secured credit facility. This funding will be essential for completing Phase One of their Sierra ARC Commercial Lithium-Ion Battery Recycling Facility. Additionally, the company has priced an equity raise of $7 million, which is expected to bolster their balance sheet.
From a financial perspective, this is a positive move. The combination of the credit facility and equity raise strengthens Aqua Metals' financial position, enhancing their ability to complete their key project. The focus on sustainability and the reduction of waste and greenhouse gases could make Aqua Metals more attractive to socially conscious investors.
The non-binding nature of the term sheet means that final terms are still subject to change and contingent upon both parties' due diligence. This introduces some uncertainty, which investors should watch closely. However, the involvement of a major private company indicates significant confidence in Aqua Metals' future prospects.
Overall, this financing boosts Aqua Metals' short-term liquidity and long-term project completion potential, positioning them well for future growth.
Market Impact and Strategic Positioning: Aqua Metals' strategic financial deal with one of the world’s largest privately held companies signifies a strong endorsement of their technology and business model. The funding is aimed at completing the Sierra ARC facility, which will enhance Aqua Metals' capacity to recycle lithium-ion batteries on a commercial scale. This positions Aqua Metals as a key player in the growing market for sustainable battery recycling.
With an expected output equivalent to 30,000 average-sized EV battery packs, this project is critical for addressing the increasing demand for recycled battery materials. The facility will play a pivotal role in building a circular supply chain for critical minerals, aligning with the broader industry shift toward sustainability and decarbonization.
This partnership not only secures the necessary capital for Aqua Metals but also validates their innovative process, setting new industry standards for environmental responsibility. The company's focus on reducing greenhouse gas emissions and eliminating waste streams positions them favorably against traditional recycling methods.
Investors should take note of the long-term potential this brings to Aqua Metals, aligning with global sustainability trends and regulatory pressures for greener technologies.
Technological Advancements: Aqua Metals' AquaRefining technology represents a significant advancement in the battery recycling industry. Unlike traditional methods, AquaRefining uses an electrified process that drastically reduces CO2 emissions and completely eliminates sodium sulfate waste streams. This aligns well with global sustainability goals and regulatory trends towards reducing industrial waste and greenhouse gases.
From a technological standpoint, the validation by the independent engineering report and lifecycle analysis conducted by ICF International adds credibility to Aqua Metals' claims about their innovative process. The ability to efficiently recycle valuable materials like lithium, nickel and cobalt from lithium-ion batteries is a key differentiator and competitive advantage in the market.
As the demand for electric vehicles and renewable energy storage increases, the need for sustainable and efficient recycling processes will grow. Aqua Metals' technology positions them to capture a significant share of this emerging market, providing a low-cost, sustainable supply of critical minerals.
For investors, this technological edge not only ensures compliance with environmental regulations but also enhances the company's growth prospects in the burgeoning green economy.
Funding Intended to Complete Phase One of the Sierra ARC Commercial Lithium-Ion Battery Recycling Facility, Commissioning in 2024
RENO, Nev., May 15, 2024 (GLOBE NEWSWIRE) -- Aqua Metals, Inc. (NASDAQ: AQMS), a pioneer in sustainable lithium-ion battery recycling, today announced the signing of a non-binding term sheet with one of the world’s largest privately held companies for a secured credit facility of up to
Simultaneous to this development, Aqua Metals announced its pricing of an equity raise of
Strategic Financial Collaboration
The term sheet is non-binding, except for certain confidentiality and break-up provisions, and contemplates a closing by June 30, 2024, subject to the lenders’ continuing due diligence and the parties’ negotiation and execution of definitive agreements.
Aqua Metals will strengthen its financial position through this strategic relationship with one of the world’s largest privately held companies, which is investing heavily in a global portfolio of decarbonization technologies. An extensive two-month review by the lender thoroughly examined the company’s financial health, ability to generate revenue and service the debt, strategic partnerships, and innovative supply and off-take agreements. In advance of this engagement, Aqua Metals also recently completed an independent engineering report and lifecycle analysis, conducted by ICF International, which validated the Company’s groundbreaking technology and its substantial reductions in waste and greenhouse gas emissions. This strategic financial partnership will bolster Aqua Metals’ capacity to advance its sustainable lithium battery recycling operations. The lender required its name to be withheld until the definitive loan agreement is executed.
Focus on Sustainability and Economic Impact
The funding is intended to cover existing and future capital costs and facilitate the completion of Phase One of the Sierra ARC, which will consist of a commercial scale lithium-ion battery recycling facility capable of processing 3,000 tons per year of black mass feedstock material recovered from pre-processed lithium-ion batteries. The expected critical mineral output of the first phase of the Sierra ARC (lithium carbonate, nickel, cobalt and other metals) is equivalent to about 30,000 average sized EV battery packs. The completion of Phase One of the Sierra ARC is crucial for scaling up the production of sustainably recycled battery materials and building a circular supply chain for critical minerals essential to the United States’ rapidly growing battery manufacturing capacity.
“This agreement marks a significant milestone in securing the financial resources necessary to complete the Sierra ARC, which is pivotal to our strategy of establishing a closed-loop supply chain for battery recycling,” said Steve Cotton, CEO of Aqua Metals. “This partnership will not only support our financial stability but also will reinforce our commitment to innovation and sustainability in the lithium battery recycling sector.”
Building a Sustainable Future
The investment will enable Aqua Metals to enhance its operational capacity and further develop its patented AquaRefining technology, which has set new standards for performance and environmental responsibility in the battery recycling industry. Unlike traditional recycling methods, AquaRefining uses an electrified process that vastly reduces production of CO2 greenhouse gases and entirely eliminates sodium sulfate waste streams, aligning with global sustainability goals.
“By finalizing this term sheet and moving towards a comprehensive financing agreement, we are positioning Aqua Metals to meet the growing demand for recycled battery materials,” added Cotton. “This strategic funding will support our continued growth and our commitment to providing a sustainable, low-cost supply of critical minerals.”
About Aqua Metals
Aqua Metals, Inc. (NASDAQ: AQMS) is reinventing metals recycling with its patented AquaRefining™ technology. The Company is pioneering a sustainable recycling solution for materials strategic to energy storage and electric vehicle manufacturing supply chains. AquaRefining™ is a low-emissions, closed-loop recycling technology that replaces polluting furnaces and hazardous chemicals with electricity-powered electroplating to recover valuable metals and materials from spent batteries with higher purity, lower emissions, and minimal waste. Aqua Metals is based in Reno, NV and operates the first sustainable lithium battery recycling facility at the Company’s Innovation Center in the Tahoe-Reno Industrial Center. To learn more, please visit www.aquametals.com.
Aqua Metals Social Media
Aqua Metals has used, and intends to continue using, its investor relations website (https://ir.aquametals.com), in addition to its Twitter, Threads, LinkedIn and YouTube accounts at https://twitter.com/AquaMetalsInc (@AquaMetalsInc), https://www.threads.net/@aquametalsinc (@aquametalsinc), https://www.linkedin.com/company/aqua-metals-limited and https://www.youtube.com/@AquaMetals respectively, as means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.
Safe Harbor
This press release contains forward-looking statements concerning Aqua Metals, Inc. Forward-looking statements include, but are not limited to, our plans, objectives, expectations and intentions and other statements that contain words such as "expects," "contemplates," "anticipates," "plans," "intends," "believes", "estimates", "potential" and variations of such words or similar expressions that convey the uncertainty of future events or outcomes, or that do not relate to historical matters. The forward-looking statements in this press release include our expectations for completing and funding the proposed
Contact Information
Investor Relations
Bob Meyers & Rob Fink
FNK IR
646-878-9204
aqms@fnkir.com
Media
Matt Roberts
Aqua Metals
775-446-7245
matt.roberts@aquametals.com
Source: Aqua Metals
FAQ
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