Exhibit 10.4
AMENDED AND RESTATED SUBSCRIPTION AGREEMENT
THIS AMENDED AND RESTATED SUBSCRIPTION AGREEMENT (this “Agreement”) dated as of January 18, 2024, is made by and among Ascend Global Investment Fund SPC, a segregated portfolio company incorporated under the laws of the Cayman Islands, for and on behalf of Strategic SP (“Ascend”), 5ECAP, LLC, a company incorporated under the laws of the State of Ohio (the “Investor”) and 5E Advanced Materials, Inc., a company incorporated under the laws of the State of Delaware (the “Company”).
WHEREAS, the parties hereto entered into a subscription agreement dated December 5, 2023 (the “Original Investor Subscription Agreement”) pursuant to which the Investor agreed to subscribe for certain shares of common stock of the Company (“Common Stock”) in connection with the Restructuring Support Agreement entered into as of December 5, 2023 (as amended, modified, supplemented or waived from time to time in accordance with its terms, the “Restructuring Support Agreement”) among the Company Parties (as defined in the Restructuring Support Agreement) and the Consenting Parties (as defined in the Restructuring Support Agreement) and the transactions contemplated by the Out-of-Court Restructuring (as defined in the Restructuring Support Agreement) (“Transactions”);
WHEREAS, substantially concurrently with the execution of the Original Investor Subscription Agreement and/or prior to the Additional Closing, the Investor acknowledged that the Company may enter into separate subscription agreements (“Other Subscription Agreements”) with certain other investors, including Ascend (collectively, the “Other Subscribers”), pursuant to which the Other Subscribers, severally and not jointly, have agreed or will agree to subscribe for certain shares of Common Stock upon the Initial Closing and/or the Additional Closing.
WHEREAS, the parties hereto wish to amend and restate the Original Investor Subscription Agreement, the terms and conditions of which shall be superseded in its entirety by those set out in this Agreement;
WHEREAS, in connection with the Placement (as defined in the Restructuring Support Agreement), the Investor shall subscribe for and purchase the Investor Subscription Shares (as defined herein) for the Investor Purchase Price (as defined herein), and the Company shall issue and sell the Investor Subscription Shares to the Investor in consideration of the payment of the Investor Purchase Price therefor by or on behalf of the Investor to the Company, all on the terms and conditions set forth herein;
WHEREAS, the issue and sale of the Investor Shares and the Additional Ascend Shares (if any) hereunder shall be made in reliance upon Section 4(a)(2) under the U.S. Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder (the “Securities Act”), or upon such other exemption from the registration requirements of the Securities Act as may be available with respect to any or all of the transactions to be made hereunder; and
NOW, THEREFORE, in consideration of the foregoing and the mutual representations, warranties and covenants, and subject to the conditions, herein contained, and intending to be legally bound hereby, the parties hereto agree as follows:
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“Ascend Additional Subscription” has the meaning given to it in Section 2(c).
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“Material Adverse Effect” shall mean, with respect to any event, occurrence or condition, (a) a material adverse effect on the legality, validity or enforceability of this Agreement or the transactions contemplated by this Agreement, (b) a material adverse effect on the results of operations, assets,
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business or condition (financial or otherwise) of the Company and its Subsidiaries, taken as a whole, or (c) a material adverse effect on the Company’s ability to perform in any material respect on a timely basis its obligations under this Agreement (other than as arising from, or relating to, the failure by the Investor or its Affiliates to perform their obligations under this Agreement); provided, however, that the determination of whether, there has been or will be a Material Adverse Effect shall not include any event, circumstance, occurrence, fact, condition or change, directly or indirectly, arising out of or attributable to: (i) any change, or proposed change in, or change in the interpretation of, any Law or accounting rules, including GAAP; (ii) events or conditions generally affecting the industries or geographic areas in which the Company operates; (iii) general economic, financial, credit, or political conditions, including changes in the credit, debt, securities, financial markets in general; (iv) any geopolitical conditions, outbreak of hostilities, civil unrest or similar disorder, acts of war (whether or not declared), sabotage, cyberterrorism, terrorism, military actions, earthquakes, volcanic activity, hurricanes, tsunamis, tornadoes, floods, mudslides, wild fires, any other natural or man-made disaster or acts of God, weather conditions, epidemics, pandemics and other force majeure events (including any escalation or general worsening thereof); (v) general changes in the price of the Company’s Common Stock or other securities; (vi) any actions required or permitted by the Note Purchase Agreement, the Restructuring Support Agreement and transactions contemplated thereby, or any action taken, any failure to take action or such other changes or events, in each case, which the Company has consented to in writing, and any effect resulting therefrom; (vii) delay or failure in obtaining, or revocation of, franchises, grants, authorizations, licenses, permits, easements, variances, exceptions, consents, certificates, approvals and orders of any Governmental Authority (including without limitation any delay or failure with respect to any authorization or modification to any permit with the US Environmental Protection Agency); (viii) any failure by the Company to meet any internal or published projections, forecasts, guidance, estimates, milestones, budgets or financial or operating predictions of revenue, earnings, cash flow or cash position; (ix) any effect attributable to the announcement or execution, pendency, negotiation or consummation of the Restructuring Support Agreement and the transactions contemplated thereby; or (x) any matters, facts, or disclosures set forth in the Company SEC Documents.
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None of the Company, any of its Subsidiaries, or any of the Company’s or its Subsidiaries’ Affiliates or any of their respective directors, officers, employees, or agents acting or benefiting in any capacity in connection with the transactions contemplated by this Agreement is (i) in violation of any Anti-Terrorism Law or Anti-Corruption Law, (ii) engaging in or conspiring to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding or attempts to violate, any of the prohibitions set forth in any Anti-Terrorism Law or Anti-Corruption Law, or (iii) is a Blocked Person. None of the Company, any of its Subsidiaries, or to the Knowledge of the Company and any of their Affiliates, any of their respective directors, officers, employees, or agents, acting or benefiting in any capacity in connection with the transactions contemplated by this Agreement, (x) conducts any business or engages in making or receiving any contribution of funds, goods or services to or for the benefit of any Blocked Person, or (y) deals in, or otherwise engages in any transaction relating to, any property or interest in property blocked pursuant to Executive Order No. 13224, any similar executive order or other Anti-Terrorism Law. The Company, its Subsidiaries and Affiliates, and to the Knowledge of the Company each of their respective directors, officers, employees, or agents are and have been in compliance with all applicable Anti-Terrorism Laws and Anti-Corruption Laws.
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If to the Company, to: |
| 5E Advanced Materials, Inc. 9329 Mariposa Road, Suite 210 Hesperia, California 92344 Attention: Paul Weibel E-mail: pweibel@5eadvancedmaterials.com |
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With a copy (which shall not constitute notice or delivery of process) to: |
| Winston & Strawn LLP 800 Capitol Street, Suite 2400 Houston, Texas 77002 Attention: J. Eric Johnson E-mail: jejohnson@winston.com |
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If to Ascend: |
| Ascend Global Investment Fund SPC for and on behalf of Strategic SP 1 Kim Seng Promenade #10-01 East Tower Great World City Singapore 237994 Attention: Mulyadi Tjandra and Michelle Tanuwidjaja E-mail: muljadi.tjandra@ascendcapitals.com, michelle.tanuwidjaja@ascendcapitals.com |
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With a copy (which shall not constitute notice or delivery of process) to: |
| Latham & Watkins LLP 9 Raffles Place #42-02 Republic Plaza Singapore 048619 Attention: Marcus Lee E-mail: marcus.lee@lw.com
and Latham & Watkins LLP 1271 Avenue of the Americas New York, NY 10020 Attention: Adam Goldberg and George Klidonas E-mail: adam.goldberg@lw.com; george.klidonas@lw.com |
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If to the Investor: |
| 5ECAP, LLC c/o Empire Capital Management, LLC 6724 Perimeter Loop Road, S 145 Dublin, Ohio, 43017 Attention: David J. Richards and Ken Leachman E-mail: djr@empirecapmgt.com, kleachman@empirecapmgt.com |
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With a copy (which shall not constitute notice or delivery of process) to: |
| Adam P. Richards, Esq. Cooper & Elliott, LLC 305 W Nationwide Blvd Columbus, OH 43215 E-mail: adamr@cooperelliott.com |
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[Signature page follows]
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by the undersigned, thereunto duly authorized, as of the date first set forth above.
5E ADVANCED MATERIALS, INC. | |
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By: | /s/ Paul Weibel |
Name: | Paul Weibel |
Title: | Chief Financial Officer |
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ASCEND GLOBAL INVESTMENT FUND SPC FOR AND ON BEHALF OF STRATEGIC SP | |
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By: | /s/ Mulyadi Tjandra |
Name: | Mulyadi Tjandra |
Title: | Director |
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5ECAP, LLC BY: EMPIRE CAPITAL MANAGEMENT, LLC ITS: MANAGER | |
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By: | /s/ David J. Richards |
Name: | David J. Richards |
Title: | Manager |
[Signature Page to Amended and Restated Empire Subscription Agreement]