SCHEDULE: UBS Asset Management Unit Discloses 4.9% Stake in Electra Battery Materials

OCONNOR, a distinct business unit of UBS Asset Management Americas (LLC), has disclosed a 4.9% beneficial ownership stake in Electra Battery Materials Corp, primarily for investment purposes.

Summary

• OCONNOR, a distinct business unit of UBS Asset Management Americas (LLC), beneficially owns 918,210 common shares of Electra Battery Materials Corp.
• This stake represents 4.9% of the outstanding common shares, calculated based on 17,962,173 shares outstanding as of June 25, 2025, plus 776,810 shares obtainable from warrants and notes.
• The ownership includes 141,400 direct common shares, $11,463,000 principal amount of Notes, 2025 Warrants to purchase 75,000 common shares, and 2028 Warrants to purchase 555,679 common shares.
• Approximately $353,374 in cash was used from general working capital to acquire a portion of the common shares and 2025 Warrants.
• A portion of the Notes and all 2028 Warrants were acquired in exchange for previously held outstanding convertible notes, and remaining Notes were acquired in satisfaction of cash interest.
• The acquisition was for investment purposes in the ordinary course of business and not with the purpose or effect of changing or influencing the control or management of the Issuer.

Sentiment

Score: 7

Explanation: The filing indicates a significant, non-activist investment by a reputable institutional investor, which can be viewed positively as a vote of confidence in the company's long-term prospects within the battery materials sector.

Positives

• A significant beneficial ownership stake (4.9%) by OCONNOR, a distinct business unit of UBS Asset Management Americas (LLC), signals institutional interest in Electra Battery Materials Corp.
• The acquisition was for investment purposes in the ordinary course of business, indicating a strategic, long-term view rather than an activist stance.

Future Outlook

NA

Industry Context

This filing indicates a significant investment by a major financial institution in the battery materials sector, which is experiencing substantial growth driven by the global transition to electric vehicles and renewable energy storage. The investment by UBS Asset Management's OCONNOR unit suggests confidence in Electra Battery Materials Corp's position within this evolving industry.

Stakeholder Impact

• The disclosure of a significant institutional stake may increase investor confidence and potentially attract further investment in Electra Battery Materials Corp.
• The investment is for ordinary course investment purposes, suggesting no immediate impact on corporate governance or strategic direction from the reporting person.

Key Dates

Recommendation

The filing indicates a significant, passive investment by a major institutional player, OCONNOR (UBS Asset Management), in Electra Battery Materials Corp. This suggests a degree of confidence in the company's long-term prospects within the battery materials sector. However, as a Schedule 13D primarily discloses ownership and not operational performance or future guidance, it provides limited new information to warrant a 'buy' or 'sell' recommendation. The investment is for 'ordinary course of business' and 'not with the purpose... of changing or influencing the control or management,' implying a passive, long-term holding strategy. Therefore, for an investor already holding the stock, maintaining the position is a reasonable approach given the institutional validation without new performance data. For those not holding, it's a positive signal but further due diligence on the company's fundamentals is required before initiating a position.

Keywords

Electra Battery Materials Corp, OCONNOR, UBS Asset Management, Schedule 13D, Beneficial Ownership, Common Shares, Warrants, Convertible Notes, Investment Management, Battery Materials