Algoma Steel Group Inc, a leading Canadian producer, has received CAD 500 million from the Governments of Canada and Ontario, specifically CAD 400 million from the Canada Enterprise Emergency Funding Corporation (CEEFC) and CAD 100 million the Province of Ontario.
These funds strengthen Algoma’s balance sheet allowing enhanced financial flexibility as the company improves its EAF transformation and begins to find opportunities to strengthen and diversify its business. According to Algoma’s statement, the company “has issued CAD 6.77 million common share purchase warrants to CEEFC and Ontario, with each warrant being exercisable for one common share of Algoma at an exercise price of $11.08 for a 10-year term, vesting proportionately as unsecured draws are made under each of the CEEFC and Ontario facilities”.
“Completing this financing reinforces our strong partnership with both levels of government and supports our ability to navigate current market conditions as we complete our EAF transition,” said Michael Garcia, CEO of Algoma Steel. “This support provides Algoma with long-term financial flexibility. We are grateful for the government’s confidence in Algoma’s future as a low-carbon steel producer.”