TMC Partners With Investors for $17.5 Million Offering in Metals

TMC Engages Investors for a Significant Offering

Recently, TMC the metals company Inc. (NASDAQ: TMC) has made headlines by entering into a significant securities purchase agreement with both new and existing institutional investors. This deal is aimed at raising funds through the sale of 17,500,000 common shares, without par value, alongside Class B warrants. The accompanying Class B warrants grant investors the right to purchase up to 8,750,000 additional shares, thereby adding value to this investment opportunity.

Details of the Offering

Each common share is priced at just US$1.00, while the Class B warrants, which can be exercised immediately once issued, are available at a price of $2.00 per share. This strategic move could potentially garner TMC approximately US$17.5 million in gross proceeds, although this figure excludes financial advisor fees and other offering expenses. Overall, the funds raised will be directed towards working capital and general corporate needs, which is crucial for advancing the company’s mission in the battery metals sector.

Closing Expectations and Advisors

The anticipated closing date for this offering is set for a time before November 22, 2024. A.G.P./Alliance Global Partners is serving as the placement agent for this offering, while Cantor Fitzgerald & Co. and EAS Advisors, through Odeon Capital Group, LLC, have been brought on as financial advisors. Their expertise is expected to facilitate a smooth transaction process, benefiting both TMC and its investors.

Regulatory Framework and Availability

This offering is being conducted under an effective shelf registration statement that TMC filed with the U.S. Securities and Exchange Commission. The recently filed prospectus supplement contains detailed information, ensuring transparency around the terms of the offering. Investors can access this information on the SEC's website, reinforcing TMC's commitment to regulatory compliance.

About TMC and Its Mission

TMC is focused on responsibly exploring lower-impact battery metals sourced from seafloor polymetallic nodules. The company has set two primary goals: the first is to provide essential metals that contribute to the global energy transition with minimal ecological disruption, and the second is to recover and recycle these metals. This innovative approach aims to establish a sustainable metals commons for future generations.

Exploration Rights

Through its subsidiaries, TMC has secured exploration and commercial rights to three contract areas in the Clarion Clipperton Zone of the Pacific Ocean. These rights are administered by the International Seabed Authority and enjoy sponsorship from the governments of Nauru, Kiribati, and the Kingdom of Tonga. These strategic partnerships enhance TMC's capabilities in the industry and ensure the responsible management of their resources.

Frequently Asked Questions

What is the main purpose of TMC's recent offering?

The offering aims to raise approximately $17.5 million to support TMC's working capital and various corporate initiatives.

Who are TMC's financial advisors for this offering?

A.G.P./Alliance Global Partners is acting as the placement agent, and additional support is provided by Cantor Fitzgerald & Co. and EAS Advisors.

What are the terms of the Class B warrants?

Class B warrants allow investors to purchase shares at $2.00 each and are exercisable immediately once issued.

How is TMC contributing to environmental responsibility?

TMC focuses on exploring battery metals in a manner that has the least negative impact on the environment, aligning with global sustainability goals.

Where are TMC's exploration rights located?

TMC holds exploration and commercial rights in the Clarion Clipperton Zone, an area regulated by the International Seabed Authority.

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