Algoma Steel completes $500M government financing transaction

Algoma Steel (ASTL) Group completed its $500 million financing transaction with the Governments of Canada and Ontario, consistent with the binding term sheets announced on September 29, 2025. The financing includes $400 million from the Canada Enterprise Emergency Funding Corporation, a subsidiary of Canada Development Investment Corporation, and $100 million from the Province of Ontario. Algoma has issued 6.77 million common share purchase warrants to CEEFC and Ontario proportionately, 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. These seven-year facilities strengthen Algoma’s balance sheet, providing enhanced financial flexibility as the Company advances its Electric Arc Furnace transformation and pursues opportunities to strengthen and diversify its business.