5E Advanced Materials announced today that the team successfully achieved its first production of boric acid.
The first production of boric acid allows the company to commence a customer qualification process to potentially become an approved supplier to targeted customers.
5E Advanced Materials has also announced that it has amended its outstanding senior secured convertible notes to extend the waiver of the notes’ cash covenant.
The future of boric acid production
With the first production batch of boric acid now achieved, 5E will continue to refine operating parameters to meet and exceed customer specifications.
5E anticipates beginning the customer qualification process with a variety of customer prospects.
The customer qualification process will include 5E providing samples of boric acid for customers to validate their customer-established qualification criteria.
Upon successful feedback from customers that the product meets their specifications, 5E will then deliver larger volumes of boric acid from the SSF to the customer production facilities for product validation.
Susan Brennan, Chief Executive Officer at 5E Advanced Materials, stated: “I am pleased that we have achieved first production of boric acid from our Small-Scale Facility (SSF).
“I am incredibly proud of our team’s dedication and hard work to achieve another historic milestone. This marks an important step in bolstering and securing a boron supply chain that is made in America.”
She added: “While first production was no easy task, the team delivered through the normal challenges of starting up a new production process to continue building a globally significant business in the boron market.”
Amendment of senior secured convertible notes
5E Advanced Materials also announced an amendment to its outstanding senior secured convertible notes, which extends a waiver of the existing financial cash covenant from 28 June 2024 to 31 December 2024.
From 31 December 2024, the cash covenant will require that 5E maintains a cash balance of at least $7.5m.
