Successful signing of Equity Purchase Agreement relating to the sale of $40 million in aggregate gross proceeds of ordinary shares to certain investors

Rhea-AI Summary

Ferroglobe PLC (NASDAQ: GSM) announced an Equity Purchase Agreement on June 18, 2021, to issue 8,918,618 ordinary shares at $4.485 each, generating $40 million in gross proceeds. This price reflects a 15% discount from the last closing price of $5.29. The funds will be utilized for general corporate purposes, satisfying obligations from a prior Lock-Up Agreement. A shelf registration statement for these shares has been filed and approved by the SEC.

Positive

• Successfully raised $40 million in gross proceeds through the issuance of 8,918,618 shares.
• Proceeds will be used for general corporate purposes, strengthening financial stability.

Negative

• Share issuance at a 15% discount may dilute existing shareholder value.
• Relying on proceeds to meet obligations could indicate previous financial pressures.

LONDON, June 18, 2021 (GLOBE NEWSWIRE) -- Ferroglobe PLC (NASDAQ: GSM) (the “Company”) is pleased to announce that on June 18, 2021 it entered into an Equity Purchase Agreement with Rubric Capital Management LP (“Rubric”), on behalf of certain managed or sub-managed funds and accounts and Grupo Villar Mir, S.A.U. (“GVM”) relating to the sale of 7,803,791 ordinary shares to Rubric and 1,114,827 ordinary shares to GVM (collectively, the “Shares”) at an issue price of $4.485 per Share, which would result in aggregate gross proceeds of $40 million. The issue price per Share represents a 15% discount to the last reported closing price, $5.29, of our ordinary shares on the Nasdaq Capital Market on June 17, 2021. The Shares are expected to be issued on the transaction effective date for the transactions set forth under the lock-up agreement dated March 27, 2021 between the Company and certain financial stakeholders (the “Lock-Up Agreement”). Upon completion of this offering, the Company intends to use the net proceeds from this offering for general corporate purposes. With the proceeds from this offering, the Company will have satisfied its obligation to raise $40 million through the issuance of new equity to complete the transactions contemplated by the Lock-Up Agreement.

A shelf registration statement relating to the Shares has been filed with the Securities and Exchange Commission and has been declared effective.

About Ferroglobe

Ferroglobe is one of the world’s leading suppliers of silicon metal, silicon-based and manganese-based specialty alloys and ferroalloys, serving a customer base across the globe in dynamic and fast-growing end markets, such as solar, automotive, consumer products, construction and energy. For more information, visit http://investor.ferroglobe.com.

Forward-Looking Statements

This release contains “forward-looking statements” within the meaning of U.S. securities laws. Forward-looking statements are not historical facts but are based on certain assumptions of management and describe Ferroglobe’s future plans, strategies and expectations. Forward-looking statements often use forward-looking terminology, including words such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “forecast”, “guidance”, “intends”, “likely”, “may”, “plan”, “potential”, “predicts”, “seek”, “will” and words of similar meaning or the negative thereof.

Forward-looking statements contained in this press release are based on information currently available to Ferroglobe and assumptions that management believe to be reasonable but are inherently uncertain. As a result, Ferroglobe’s actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements, which are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond Ferroglobe’s control.

All information in this press release is as of the date of its release. Ferroglobe does not undertake any obligation to update publicly any of the forward-looking statements contained herein to reflect new information, events or circumstances arising after the date of this press release. You should not place undue reliance on any forward-looking statements, which are made only as of the date of this press release.

No offer

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities. Any offers, solicitations or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act of 1933, as amended (“Securities Act”).

INVESTOR CONTACT:

Gaurav Mehta
Executive Vice President - Investor Relations
investor.relations@ferroglobe.com

MEDIA CONTACT:

Cristina Feliu Roig
Executive Director – Communications & Public Affairs
corporate.comms@ferroglobe.com
Source: Ferroglobe PLC

 

FAQ

What is Ferroglobe PLC's Equity Purchase Agreement about?

Ferroglobe PLC's Equity Purchase Agreement involves issuing nearly 8.9 million shares to raise $40 million.

When was Ferroglobe PLC's Equity Purchase Agreement announced?

The Equity Purchase Agreement was announced on June 18, 2021.

What is the share price for Ferroglobe PLC's new equity issuance?

The shares are being issued at $4.485 each, a 15% discount from the last closing price.

How much capital does Ferroglobe PLC aim to raise through the share issuance?

Ferroglobe PLC aims to raise $40 million through this equity issuance.

How will Ferroglobe PLC use the proceeds from the share issuance?

The proceeds will be used for general corporate purposes.

What is the implication of issuing shares at a discount for Ferroglobe PLC shareholders?

Issuing shares at a discount may dilute existing shareholder value.