Subsequent Events

6 Months Ended

Jun. 30, 2022

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

Settlement fee

As discussed in Note 21 - Commitments and Contingencies, the Company engaged a financial advisor in February 2022. On July 26, 2022, the Company executed a settlement agreement with a financial advisor whereby the Company agreed to pay a $3.5 million fee of which 50% is directly related to liability management for the Note Amendment and 50% is directly attributable to the Private Placement Offering. In addition, under the settlement agreement, the engagement was terminated with no future obligations. The Company agreed to pay $1.8 million in cash and issue shares of common stock under a private placement for the remaining $1.8 million. The Company issued 1,714,678 shares of common stock on July 28, 2022 and remitted the cash payment on August 1, 2022. The number of shares of common stock issued was determined using the volume weighted average price on the Nasdaq Capital Market for the 10 trading days preceding the effective date of the agreement.

Seller Warrants

On August 3, 2022, the Company issued a notice under the Seller Warrant Agreement notifying the holders of its Seller Warrants that the terms of the Seller Warrants have been adjusted effective as of August 3, 2022 as a result of the issuance or deemed issuance of additional equity awards under the HYMC 2020 Performance and Incentive Pay Plan to “Restricted Persons” (as defined in the Seller Warrant Agreement) through August 3, 2022 in the aggregate amount of 2,570,602 restricted stock units convertible into shares of common stock and for the prospective issuance of up to 500,000 shares of common stock to participants who may be deemed to be Restricted Persons. These shares of common stock were not prospectively adjusted for previously under the Seller Warrant provisions.

In accordance with the adjustment provisions of the Seller Warrant Agreement: (1) the exercise price of each Seller Warrant is decreased from $40.31 per share of common stock to $39.90 per share of common stock; (2) the number of shares of common stock issuable upon exercise of each Seller Warrant is increased from 0.28055 to 0.28347; and (3) as adjusted, the aggregate number of shares of common stock issuable upon full exercise of the 12,721,901 outstanding Seller Warrants is increased from 3,569,051 to 3,606,256 shares of common stock.