American Battery Metals Corporation (OTCQB: ABML) stock lost -4.35% on the last trading session when the stock closed at $1.32. An American Battery Metals stock volume of 4.03B stood in contrast to its average monthly volume of 5.25B. The ABML stock declined despite entering into a share purchase agreement recently.
What was the agreement?
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Since ABML has three divisions: lithium-ion battery recycling, extraction technologies and primary resources, ABML is quite unique in supplying battery metals. In order to increase production of primary metals used in batteries for electric cars, grid storage applications, consumer electronics and tools, ABML has built a clean technology platform. ABML is in the process of renaming itself American Battery Technology Company.
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Earlier this week, American Battery Metals announced it entered into a common stock purchase agreement and agreed to sell registration rights to an institutional investor.
- An agreement was reached by ABML for shares to be issued for a worth as high as $75 million over the following 24-months based on the stock’s trading price.
- It is important to note that the institutional investor owns shares of ABML, having put money into fixed-priced equity over the past year.
- This standard common stock purchase agreement by ABML contains features that are similar to those common to many Nasdaq and NYSE firms’ At-The-Market transactions for accessing capital at and near current market share prices.
- Through the agreement, ABML has the sole discretion to sell shares to the investor who has a legal obligation to purchase them at the market price when the ABML initiates a sale.
How will it be executed?
There is no upper price limit to the price a shareholder may pay per share of American Battery Metals (ABML), and the price at which the shares can be purchased will be based on the current market value of ABML’s shares at the time each ABML share is sold. There is no obligation in the Agreement to issue and sell warrants, derivatives, financial or business covenants. An earlier S-1 Registration Statement’s equity line of credit by ABML raised $9,231,638 at an average price of $2.17 per share in January 2021.