Stock Markets February 20, 2026

Electra Battery Materials Upsizes ATM to $25M; Shares Slip After Hours

Company expands at-the-market program to bolster working capital and support Ontario sulfate refinery commissioning

By Jordan Park ELBM
Electra Battery Materials Upsizes ATM to $25M; Shares Slip After Hours
ELBM

Electra Battery Materials Corporation said it increased the size of its previously disclosed At the Market - ATM - offering to up to $25 million from $5.5 million, a move that coincided with a 2.1% decline in the company's shares in after-hours trading on Friday. The expanded facility, placed through H.C. Wainwright & Co., LLC, permits sales of common shares at market prices on the Nasdaq Capital Market and is intended to supply cash for working capital and corporate needs, including potential expenses related to commissioning its Ontario sulfate refinery.

Key Points

  • Electra expanded its at-the-market offering to up to $25 million from $5.5 million, with sales to be executed through H.C. Wainwright & Co., LLC.
  • Shares fell 2.1% in after-hours trading following the announcement; sales will be made on or through the Nasdaq Capital Market and not on Canadian exchanges.
  • Net proceeds are intended for working capital and general corporate purposes and may be used toward commissioning the company’s Ontario sulfate refinery; management says current liquidity plus potential government debt financing are expected to fund planned mechanical completion.

Market reaction and transaction outline

Shares of Electra Battery Materials Corporation (NASDAQ:ELBM; TSX-V:ELBM) fell 2.1% in after-hours trading on Friday following the company’s disclosure that it has increased the size of its At the Market Offering Program. The firm boosted the program to a maximum aggregate offering price of $25 million, up from the previously announced $5.5 million.

The enlarged program authorizes Electra to sell common shares at its discretion through H.C. Wainwright & Co., LLC. The sales are to be effected as transactions that qualify as "at-the-market offerings" under the Securities Act, including sales conducted directly on or through the Nasdaq Capital Market at prevailing market prices. The company noted explicitly that no shares will be sold on the TSX Venture Exchange or other Canadian trading markets.

Background and legal framework

Electra established the ATM arrangement under an agreement dated June 26, 2025. The announced $25 million aggregate amount incorporates sales previously completed under the initial $5.5 million program, which was covered by a prospectus supplement dated December 11, 2025. The offering is being carried out pursuant to a registration statement on Form F-3 filed with the U.S. Securities and Exchange Commission and declared effective on December 11, 2025.

Use of proceeds and funding position

The company said it intends to use net proceeds from the ATM for working capital and general corporate purposes. Those uses may include expenditures connected to the commissioning of its sulfate refinery in Ontario, Canada. Electra stated that, based on its current operating plan, existing cash and cash equivalents and other sources of liquidity - which may include government debt financing - are expected to be sufficient to fund the refinery’s planned mechanical completion.

Implications for investors

The announcement formalizes a broader financing capacity for Electra while indicating management’s options to raise capital through incremental at-the-market sales. The market responded with a modest after-hours share price decline following the disclosure.


Note: This article presents the company-disclosed terms and market reaction without additional commentary or outside analysis.

Risks

  • Share dilution risk from additional equity sold under the expanded ATM program, which may affect existing shareholders - impacts capital markets and equity investors.
  • Near-term share price pressure, as evidenced by the 2.1% after-hours decline following the announcement - impacts trading and investor sentiment in the battery materials sector.
  • Uncertainty around project-related expenditures for the Ontario sulfate refinery; while the company expects existing liquidity and other sources may be sufficient, the need for additional financing remains a potential uncertainty - impacts project finance and industrial capital deployment.

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