CENTENNIAL, CO – Today, NioCorp Developments Ltd. (NASDAQ:NB), a metal mining company, announced alterations to its existing financial obligations with YA II PN, Ltd. and Lind Global Fund II LP, collectively referred to as the "Holders". The company entered into agreements that adjust the payment schedules and extend the maturity date of previously issued unsecured notes.
As per the new terms agreed on October 3, 2024, NioCorp has negotiated a reduction in the amount due to the Holders for October 1, 2024, from $1,176,476 to $335,524. To offset this reduction, the payment due on January 1, 2025, will be increased by the same amount. Additionally, the maturity date of the notes has been extended from December 31, 2024, to January 31, 2025. These adjustments provide NioCorp with immediate short-term financial relief and additional time to fulfill its obligations.
The notes in question were originally issued on April 12, 2024, under a securities purchase agreement. The amendments, detailed in the consents and waivers, also include a waiver for any potential default that could have arisen from the company's inability to pay the full amount due on October 1, 2024. The overall terms of the notes, aside from the changes specified in the consents, remain unchanged.
This restructuring of debt is part of NioCorp's financial strategy as it navigates through its commitments and continues its operations in the metal mining sector. The company is incorporated in British Columbia, Canada, with its principal executive offices located in Centennial, Colorado. NioCorp's common shares and warrants are traded on The Nasdaq Stock Market under the symbols NB and NIOBW, respectively.
In other recent news, NioCorp Developments Ltd. has made significant financial strides. The company has secured a $2 million credit facility from its CEO, Mark A. Smith, to bolster its finances. The loan carries a 10% annual interest rate and a 2.5% establishment fee for any drawdowns. Also, NioCorp has restructured its financial obligations with key note holders, YA II PN, Ltd. and Lind Global Fund II LP, offering short-term financial relief and preventing potential default triggers.
In addition, the company has cleared a $16 million convertible debenture issued to investment fund YA II PN, Ltd. These recent developments underscore NioCorp's efforts to strengthen its financial position and effectively manage its capital structure.
On the project front, NioCorp is eyeing financing for the Elk Creek Critical Minerals Project in Nebraska. The project is expected to produce niobium, scandium, and titanium, crucial for various industries. The company has received a preliminary, non-binding indicative financing term sheet from the Export-Import Bank of the United States for an $800 million debt financing for the project.
InvestingPro Insights
NioCorp's recent debt restructuring aligns with its current financial challenges, as highlighted by several InvestingPro metrics and tips. The company's operating income, EBIT, and EBITDA for the last twelve months as of Q4 2024 all stand at -$13.76 million, indicating ongoing profitability issues. This is further underscored by an InvestingPro Tip noting that NioCorp has not been profitable over the last twelve months.
The stock has taken a significant hit recently, with a 9.8% decline in the past week and a substantial 47.88% drop over the last year. This volatility is reflected in another InvestingPro Tip, which points out that the stock has taken a big hit over the last week. The company's financial strain is also evident in its short-term liquidity, as an InvestingPro Tip reveals that short-term obligations exceed liquid assets.
Despite these challenges, NioCorp's EBITDA growth stands at 63.23%, suggesting some improvement in operational efficiency. However, analysts remain cautious, with an InvestingPro Tip indicating that they do not anticipate the company will be profitable this year.
For investors seeking a more comprehensive analysis, InvestingPro offers 5 additional tips that could provide further insights into NioCorp's financial position and future prospects.
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