After Electric Royalties’ Portfolio Rockets to 72 Assets, Stefan Gleason Further Boosts Equity Stake

Rhea-AI Summary

On May 30, 2024, Stefan Gleason announced the acquisition of additional shares of Electric Royalties, boosting his ownership to over 26% of the company's common shares. This acquisition follows Electric Royalties' expansion to 72 assets, including 40 royalties. Gleason utilized both the 'Normal Course Purchase Exemption' and the 'Private Agreement Exemption' for this purchase. Additionally, Electric Royalties received a C$10 million convertible credit facility from Gleason’s family office, enabling further asset acquisition without diluting existing shareholders. Gleason emphasized the undervaluation of Electric Royalties shares based on a conservative NPV analysis of future cash flows and positive developments in various assets.

Positive

• Stefan Gleason increased ownership to 26.05%, indicating strong investor confidence.
• Electric Royalties expanded its portfolio to 72 assets, enhancing asset diversity.
• Positive developments in key royalties such as Battery Hill and Seymour Lake.
• C$10 million convertible credit facility provided by Gleason’s family office to acquire new assets without raising equity.
• Shares acquired at a cost of C$0.20 per share, potentially indicating undervaluation.

Negative

• Share acquisition may lead to concerns over potential takeover intentions.
• Dependence on exemptions for share acquisitions could signal regulatory hurdles.
• Company’s reliance on convertible credit facilities may imply cash flow constraints.

CHARLOTTE, NC / ACCESSWIRE / May 30, 2024 / Stefan Gleason (the "Acquiror" or "Gleason") today announced that he is filing another early warning report in connection with his acquisition of additional shares of Electric Royalties Ltd. (TSXV:ELEC)(OTCQB:ELECF) ("Electric Royalties" or the "Company").

After acquiring 2,000,000 Electric Royalties shares today via a private, off-market transaction, Gleason now beneficially owns or has control or direction over more than 26% of the Company's issued and outstanding common shares.

"With Electric Royalties recently having more than tripled its overall holdings to 72 assets (including 40 royalties), I am pleased to continue the process of bolstering my long-term position in the Company by accumulating shares via open market purchases as well as private transactions," said Gleason.

"Meanwhile, with positive developments recently announced in connection with many of the Company's royalties - including Battery Hill, Seymour Lake, Mont Sorcier, Graphmada, Graphite Bull, Zonia, Kenbridge, Authier, and Chubb - as well as using a conservative NPV analysis of the Company's anticipated future cash flows, I believe Electric Royalties shares remain remarkably undervalued."

In order to make further share acquisitions above the 20% threshold, Gleason has been utilizing both the "Normal Course Purchase Exemption" and the "Private Agreement Exemption" in National Instrument 62-104 - Take-Over Bids and Issuer Bids.

Stefan Gleason is a Charlotte-based entrepreneur who leads several privately held businesses in the United States, including Money Metals Exchange LLC. Money Metals is one of the largest precious metals dealers and depositories in North America.

Gleason is also a Director of Electric Royalties. His family office, Gleason & Sons LLC, recently provided Electric Royalties an expanded C$10 million convertible credit facility that potentially enables the Company to acquire new assets without raising equity until such time as its shares are fairly valued, thereby limiting dilution of existing shareholders.

On May 30, 2024, Acquiror closed on a private agreement to acquire 2,000,000 (at a cost of C$400,000, or $0.20 per share). Prior to May 30, the Acquiror held an aggregate of 23,746,404 Common Shares, representing 24.02% of the issued and outstanding Shares on an as converted and partially diluted basis. After the acquisition on May 30, the Acquiror held 25,746,404 Common Shares, or 26.05% of the issued and outstanding Shares on an as converted and partially diluted basis.

On April 30, 2024, the Acquiror previously filed a report under the early warning reporting rules of Canadian securities laws, disclosing that he beneficially owned or had control or direction over 23,199,004 Common Shares, at the time representing 24.015% of the Company's issued and outstanding Shares on an as converted and partially diluted basis. The Acquiror is filing this latest early warning report because he has now accumulated more than 2% of the Company's issued and outstanding Shares since his prior filing on April 30, 2024.

This early warning news release is issued under the early warning provisions of Canadian securities legislation, including National Instrument 62-104 - Take-Over Bids and Issuer Bids and National Instrument 62-103 - The Early Warning System and Related Take-Over Bid and Insider Reporting Issues. A copy of the Early Warning Report will be filed at www.sedar.com.

For further information, contact:

Stefan Gleason
Gleason & Sons LLC
15720 Brixham Hill Avenue, #205
Charlotte, NC 28277
Tel: 208-577-2230

This release includes certain statements that may be deemed "forward-looking statements." All statements in this release, other than statements of historical facts, that address anticipated future events are forward-looking statements. Although the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future events and actual results or developments may differ materially from those in the forward-looking statements including as a result of the failure to obtain regulatory approvals, the availability of royalties, the production of properties underlying royalties not being as anticipated, and the Company's cash flow position deteriorating as a result of business or economic conditions.

SOURCE: Gleason & Sons LLC

View the original press release on accesswire.com

FAQ

What percentage of Electric Royalties shares does Stefan Gleason own?

As of May 30, 2024, Stefan Gleason owns over 26% of Electric Royalties' common shares.

How many assets does Electric Royalties currently hold?

Electric Royalties has expanded its portfolio to include 72 assets.

How did Stefan Gleason acquire additional Electric Royalties shares?

Gleason acquired 2,000,000 shares via a private, off-market transaction.

What is the significance of the C$10 million convertible credit facility?

The C$10 million facility allows Electric Royalties to acquire new assets without raising equity, limiting shareholder dilution.

What exemptions did Stefan Gleason use for his recent share acquisitions?

Gleason used the 'Normal Course Purchase Exemption' and the 'Private Agreement Exemption' under Canadian securities legislation.

Why does Stefan Gleason believe Electric Royalties shares are undervalued?

Gleason cites a conservative NPV analysis of future cash flows and positive developments in various assets as reasons for underestimation.