Algoma Steel receives funding from CEEFC and Ontario

Algoma Steel Group Inc, a leading Canadian producer, has received 500 million Canadian dollars from the governments of Canada and Ontario, in particular 400 million Canadian dollars from the Canadian Corporation for Emergency Enterprise Financing (CEEFC) and 100 million Canadian dollars from the province of Ontario.

These funds strengthen Algoma's balance sheet, providing increased financial flexibility as the company improves its EDP transformation and begins to find opportunities to strengthen and diversify its business. According to a statement from Algoma, the company "has issued warrants for the purchase of common shares in the amount of 6.77 million Canadian dollars for CEEFC and Ontario, with each warrant available for one Algoma common share at an exercise price of $11.08 for a 10-year term, with rights transferred pro rata as unsecured payments are made for each of the CEEFC and Ontario agreements".

"The completion of this financing strengthens our strong partnership with both levels of government and supports our ability to navigate current market conditions as we complete the transition to EDP," said Michael Garcia, CEO of Algoma Steel. "This support provides Algoma with long-term financial flexibility. We are grateful to the government for its confidence in the future of Algoma as a producer of low-carbon steel."