American Battery Metals enters into stock purchase agreement with institutional investor for up to $75M worth of shares

American Battery Metals Corporation (OTCQB:ABML) said it has entered into a common stock purchase agreement with an institutional investor for up to $75 million worth of shares issuable over the next 24 months.  The company, which is in the process of changing its name to American Battery Technology Company, noted that the institutional investor is an existing shareholder who has invested in fixed-priced equity over the past year. American Battery Metals said the structure of the purchase agreement is very similar to a commonly employed At-The-Market (ATM) structure used by many NASDAQ and NYSE-listed companies to access capital at or near current share prices.  READ: American Battery Metals COO to speak at the US Energy Storage Association conference this month "This is a major milestone for our Company as we move through the construction and commissioning of our lithium-ion battery recycling pilot plant over the coming months," said American Battery's chief technology officer, Ryan Melsert in a statement. “We will face many challenges during this process, however as this equity investment agreement has the ability to completely satisfy all of our capital needs for this entire pilot plant, from facility construction and infrastructure build-out to purchasing equipment to integrating and commissioning all of our process equipment, we can now be assured that access to capital will not be a limiting factor.”  Melsert added: “We will continue to evaluate attractive equity and debt financing options as we move forward, however with this agreement in place we have the ability, yet not the requirement, to fully finance our operations through this instrument." American Battery controls timing and pricing Under the stock purchase agreement, American Battery said it has in its sole discretion the ability to sell to the investor who is required to purchase shares based on the market price at the time the company initiates a sale. There are no upper limits to the price the investor may pay and the price will be based on the then prevailing market prices of its shares at the time of each sale.  The company noted that it raised a total of $9,231,638 in January 2021 at an average price of $2.17 per share via an earlier S-1 Registration Statement's equity line of credit. "I want to reiterate that this investment is a major step up for us and sets us up to complete all our goals for 2021, including completing construction of our 20,000-metric ton per year lithium-ion battery recycling pilot plant and uplisting to a major US national exchange,” said American Battery CFO David Corsaut.   He said many high-profile companies utilize similar equity agreements including Tesla, Roku, and Ballard Power -- and all have seen their stocks perform very well post-announcements.  "Of extreme importance to us is our control over the timing, pricing and dollar amounts of future equity capital which allows us to take advantage of sudden increases in our stock price," Corsaut added. Contact the author: patrick@proactiveinvestors.com Follow him on Twitter @PatrickMGraham