American Battery Materials, Inc. Strengthens Financial Position and Capital Structure

Rhea-AI Summary

American Battery Materials (BOXS) announced the successful conversion of convertible debt and the exercise of warrants, eliminating over $11 million in debt and significantly improving its financial position. This strategic move involved converting 99 promissory notes into approximately 2.8 billion shares of common stock and exercising 27.6 million warrants. The transactions were completed by December 31, 2022, and have reduced interest expenses and mitigated stock price volatility, positioning the company positively as it enters 2023.

Positive

• Elimination of over $11 million in debt enhances financial stability.
• Reduction of interest expense improves cash flow.
• Mitigation of stock price volatility supports shareholder value.
• Completion of the transactions positions the company strongly for 2023.

Negative

• None.

Conversion of Convertible Debt and Warrant Exercises Eliminates Over $11 Million of Debt and Limits Shareholder Dilution

GREENWICH, Conn., Jan. 10, 2023 (GLOBE NEWSWIRE) -- American Battery Materials, Inc. (OTC Pink: BOXS) (“ABM”, the “Company”) an environmentally responsible minerals exploration and development company focused on direct lithium extraction (DLE) and other critical minerals for the global energy transition, completed a series of privately negotiated agreements and transactions with holders of 99 convertible promissory notes (the “Notes”) and 4 common stock warrants (the “Warrants”). All transactions closed on December 31, 2022, and resulted in (i) the conversion of the Notes, representing outstanding principal and accrued interest totaling $11,708,345.53, into 2,818,277,866 shares of the Company’s common stock; and, (ii) exercise of the Warrants under which 27,631,065 shares of the Company’s common stock were issued in exchange for the payment of $105,000. After the closing of these transactions, almost 98% of the Company’s outstanding convertible notes were eliminated, and virtually all of the Company’s outstanding common stock warrants (excluding warrants issued to employees, management, and service providers) were exercised. The conversions of the Notes and exercises of the Warrants were all made pursuant to an exemption from registration provided in Section 4(a)(2) of the Securities Act of 1933, as amended.

“The closing of these transactions strengthens and simplifies our capital structure and overall financial position,” said Sebastian Lux, Chief Executive Officer of ABM. “By eliminating nearly all of our outstanding convertible notes and common stock warrants, we have removed over $11 million of debt from our balance sheet. In addition, these transactions have eliminated our interest expense in entire, mitigated volatility on the trading price of our common stock, and improved our cash position in a non-dilutive method.

“We concluded 2022 on a very positive note by substantially enhancing our financial position. We enter 2023 in a much stronger position that allows us to focus on executing on our business plan, and ultimately working to build sustainable value for our shareholders,” concluded Lux.

About American Battery Materials, Inc.
American Battery Materials, Inc., formerly BoxScore Brands, Inc. and still trading under the symbol BOXS pending processing by FINRA (OTC Pink: BOXS), is a US-based environmentally responsible critical minerals exploration and development company focused on direct lithium extraction (DLE) as well as other minerals for refining, processing, and distribution to support the country’s urgent critical minerals need to bolster long-term energy transition and the electrification of the US domestic and global economy. For more information about American Battery Materials, Inc. and to receive Company updates via email, please visit the Contact section of our web site, www.americanbatterymaterials.com.

Follow us on Twitter, Facebook and LinkedIn.

Forward-Looking Statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and which are based on the Company’s beliefs and assumptions and on information currently available to management. All statements contained in this release other than statements of historical fact are forward-looking statements, including but not limited to statements regarding the potential benefits of the name change; the Company’s ability to develop and commercialize its mineral rights; the Company’s planned research and development efforts; and, other matters regarding the Company’s business strategies, use of capital, results of operations and financial position, and plans and objectives for future operations. In some cases, you can identify forward-looking statements by the words “may”, “will”, “could”, “would”, “should”, “expect”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “predict”, “project”, “potential”, “continue”, “ongoing”, or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. 

These forward-looking statements are subject to risks, uncertainties and other factors that may cause actual results, performance, or achievements to be materially different from the information expressed or implied by these forward-looking statements. These risks, uncertainties, and other factors include, without limitation, the important risk factors described more fully in our reports and other documents filed with the Securities and Exchange Commission (“the SEC”), including under (i) “Part I, Item 1A. Risk Factors”, in our Annual Report on Form 10-K for the year-ending December 31, 2021, filed with the SEC on March 31, 2022; and (ii) subsequent filings. Undue reliance should not be placed on the forward-looking statements in this news release, which are based on information available to us on the date hereof. The Company does not undertake any duty to update or revise forward-looking statements except as required by federal securities laws. Any distribution of this news release after the date hereof is not intended and should not be construed as updating or confirming such information.

Company
Email: ir@americanbatterymaterials.com
Tel: (800) 998-7962

Investor Relations
Brooks Hamilton
MZ North America
+1 (949) 546-6326
ABM@mzgroup.us

FAQ

What recent financial transactions has American Battery Materials (BOXS) completed?

American Battery Materials (BOXS) completed the conversion of 99 promissory notes and exercised 4 common stock warrants, eliminating over $11 million in debt.

How many shares were issued by American Battery Materials after the recent transactions?

Approximately 2.8 billion shares of common stock were issued following the conversion of promissory notes.

What was the impact of the recent transactions on BOXS's interest expenses?

The conversion of debt eliminated interest expenses, thereby enhancing cash flow.

When were the transactions involving BOXS completed?

The transactions were completed on December 31, 2022.

How has BOXS positioned itself for 2023 after the recent financial maneuvers?

BOXS has strengthened its capital structure and improved its financial position, allowing for a focus on business execution and shareholder value.