Evolution Metals & Technologies Corp. secured $30,927,835 through a Securities Purchase Agreement with YA II PN, LTD., a fund managed by Yorkville Advisors Global, LP.

The transaction involves the issuance of convertible debentures, with the first tranche of $22,000,000 issued on September 17, 2026. The remaining amounts are contingent on regulatory filings with the Securities and Exchange Commission.

Transaction Structure

The total principal amount is split across three debentures:

Each Convertible Debenture was purchased at 97% of its principal amount. The instruments are convertible into shares of the Company’s common stock, which has a par value of $0.0001 per share.

Conversion Mechanics

The conversion price for each debenture is determined by the lower of two metrics:

• A fixed price of $5.02
• 95% of the lowest daily volume-weighted average price (VWAP) of the shares during the five consecutive trading days immediately prior to each conversion date

This variable component is subject to a floor price, ensuring the conversion price does not fall below a specified minimum threshold.

What the Numbers Show

The issuance structure creates a dependency on regulatory timelines for capital deployment. While the initial $22,000,000 provides immediate liquidity, nearly 31% of the total agreed amount ($9,927,835) remains pending until the Registration Statement is filed and subsequently declared effective by the SEC. This phased approach links the full capital raise directly to compliance milestones rather than market timing alone.

Evolution Metals & Technologies Corp. (NASDAQ: EMAT) has agreed to principal terms with Korea Electric Power Corporation to expand electrical infrastructure at its Pohang operations from 130 MW to 750 MW.

The agreement supports the company’s plan to scale rare earth permanent magnet production from 1,000 tons to approximately 10,000 metric tons annually by the end of 2026.

Infrastructure Expansion Details

The expanded power capacity represents a nearly six-fold increase in available energy for the facility. EM&T holds a right of first refusal for additional available power capacity beyond the 750 MW commitment.

Power availability is scheduled to coincide with the installation of ULVAC equipment and facility expansion in November 2026. KEPCO is expected to fund approximately 90% of the costs for related substations, cabling, and civil works.

Land Acquisition and Grants

EM&T plans to acquire approximately 1.3 million square feet of land adjacent to its current operations through direct purchase from the Pohang City Government on a freehold basis. The existing manufacturing footprint will expand from 24,000 square feet to 482,000 square feet on this new land.

The company has received conditional approval for a grant of approximately $20.7 million (₩28.3 billion) from Pohang City and Gyeongbuk Province. Execution of the grant is pending property acquisition and is intended to support plant construction and equipment purchases.

Strategic Context

Frank Moon, Chief Executive Officer, stated that securing power at this scale provides a meaningful competitive advantage and enhances cost competitiveness due to attractive local power rates. David Wilcox, Executive Chairman, noted that large blocks of reliable power are increasingly difficult to secure amid rising demand from advanced manufacturing and data centers.

Pohang is identified as a natural location for the expansion as it is the center of Korea’s steel manufacturing industry. The expanded facility is expected to accommodate additional rare earth permanent magnet manufacturing equipment, processing capacity and related infrastructure, including the ULVAC machinery currently set for delivery and installation in November 2026.

What the Numbers Show

The expansion plan links capital infrastructure directly to production volume targets. The increase in power capacity (from 130 MW to 750 MW) aligns with a ten-fold increase in production output (from 1,000 tons to 10,000 tons), suggesting that energy availability was a primary constraint on previous scaling efforts. The conditional $20.7 million grant reduces immediate cash outlay requirements for the associated land and construction costs.