Aqua Metals restructures USDA-backed loan agreement with Veritex Bank Nasdaq: AQMS

MCCARRAN, Nev., March 30, 2020 (GLOBE NEWSWIRE) – Aqua Metals, Inc. (NASDAQ: AQMS) (“Aqua Metals” or the “Company”), which is reinventing lead recycling with its AquaRefining ™ technology, announced today He signed a deal with Veritex Bank (which acquired Green Bank in January 2019) to restructure the company’s existing loan agreement of around $ 9 million.

The main objective of the restructuring was to remove various restrictive covenants imposed on the company that dictate how the proceeds of the fire insurance collection are to be spent. In addition, the restructuring of the agreement immediately frees up $ 3.5 million in insurance proceeds currently in receivership and defines how portions of the proceeds from expected future insurance recoveries will be allocated between Veritex Bank and the Company. The loan is currently secured by real estate, personal property and a certificate of deposit. Under the agreement, the company will fully cancel the approximately $ 9 million loan upon receipt of the first $ 25 million of the potential $ 50 million in insurance proceeds. Although nothing can be guaranteed, the company expects to be debt free in 2020 based on current information.

The agreed portions of all future insurance products will be applied to the outstanding loan balance as follows:

Insurance layer Potential
Product
Available in
Layer
Aqua Cash
Collection
Potential
Potential
Application
to Veritex
Ready
Collected from
Insurers at
Dated
Released at
Aqua Cash
nowadays
Layer 1 $ 5.0M $ 4.5M $ 0.5M $ 5.0M (full) $ 4.5M
Layer 2 $ 7.5M $ 4.125 M $ 3.375 million $ 5.0M ($ 2.5M pending) $ 2.75M
Layer 3 $ 12.5M $ 7.5M $ 5.0M Complaint submitted
Layer 4 $ 25 million $ 25 million N / A Complaint submitted
Totals $ 50.0M $ 41.125 M $ 8.875 million (total))

$ 2.75M (nowadays)

$ 10.0M $ 7.25M (nowadays)

“This restructured loan with Veritex supports our plan to strengthen the balance sheet and our cash position throughout 2020 with the ability to repay all significant debt in support of our accelerated transition to a low capital technology licensing model. Said Steve Cotton, President and CEO. “I would like to thank the team at Veritex with USDA Support for their continued support as we continue our business transformation.”

About Aqua Metals

Aqua Metals, Inc. (NASDAQ: AQMS) is reinventing lead recycling with its patented AquaRefining ™ technology. Unlike fusion, AquaRefining is a room temperature water-based process that emits less pollution. The modular systems are intended to enable the company to significantly reduce the environmental impact and increase the production capacity of lead-acid recycling by licensing the AquaRefining technology to partners. This could help meet the growing demand for lead to power new applications, including automotive stop / start batteries which supplement the main vehicle battery, lead acid batteries which are found in electric vehicles. , internet data centers, alternative energy applications including solar, wind and grid scale. storage. Aqua Metals is based in McCarran, Nevada. For more information, please visit www.aquametals.com.

Safe Harbor

This press release contains forward-looking statements regarding Aqua Metals, Inc. Forward-looking statements include, but are not limited to, our plans, objectives, expectations and intentions and other statements containing words such as “expects” , “considers”, “anticipates”, “plans”, “intends”, “believes”, “estimates”, “potential” and variations of such words or similar expressions which convey the uncertainty of events or results future, or which are unrelated to historical issues. Forward-looking statements contained in this press release include our expectations regarding the receipt of insurance proceeds from our November 2019 fire claims at our TRIC facility; the success of our accelerated licensing strategy; and the future of recycling lead-acid batteries through traditional foundries. These forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual results to differ materially. These factors include: (1) the risk that we may not receive payments from our insurers in an amount sufficient to compensate us for our losses; (2) the risk that our insurance recovery and proceeds from the sale of legacy assets may not be sufficient to fund our accelerated licensing strategy; (3) the risk that we may not be able to satisfactorily demonstrate to potential licensees the technical and commercial viability of our AquaRefining process; (4) the risk that licensees will refuse or delay adopting our AquaRefining process as an alternative to merger despite the perceived benefits of AquaRefining; (5) the risk that we may not realize the expected economic benefits of any license that we may enter into; (6) the risk that we may need to engage in additional sales of our equity securities in order to fund our future operations; (7) the risk that additional funding, by any means, may not be available at all; (8) the risk that our common shares will be delisted from the Nasdaq Capital Market due to our inability to restore compliance with the Nasdaq minimum bid price requirement; (9) the fact that we have only recently started producing AquaRefined lead and have not generated any significant income from the sale of AquaRefined lead to date, thus subjecting us to all the risks inherent in a business in Beginning phase; (10) the risk that our patents and any other patents that may be granted to it will be challenged, invalidated or circumvented; (11) the risk that we will not realize the expected benefits of our relationship with Veolia; (12) the risk that we may not be able to successfully conclude our proposed joint development agreement with Clarios or, if we do, realize the expected benefits of such an agreement; (13) changes in federal, state and foreign laws governing the recycling of lead-acid batteries; (14) our ability to protect our proprietary technology, trade secrets and know-how and (15) other risks disclosed in the “Risk Factors” section included in our annual report on Form 10-K filed on March 11, 2020 and thereafter Deposits with the SEC. Aqua Metals cautions readers not to place undue reliance on forward-looking statements. The Company does not undertake, and specifically disclaims any obligation, to update or revise these statements to reflect new circumstances or unforeseen events as they occur, except as required by law. .

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