Electric Royalties Announces Interest Conversion Under Convertible Credit Facility
Electric Royalties (TSXV:ELEC)(OTCQB:ELECF) has announced that Gleason & Sons has chosen to convert C$217,479.02 of accrued interest on the company's convertible credit facility into 1,279,288 common shares. The conversion price is set at C$0.17 per share. This transaction, subject to TSX Venture Exchange approval, is expected to be completed in September 2024.
The conversion is treated as a 'Shares for Debt' transaction under TSXV Policy 4.3. The newly issued shares will have resale restrictions, including a four-month and one-day hold period under Canadian securities laws and a six-month hold period under U.S. securities laws. The transaction is exempt from 'related party transaction' requirements under TSXV Policy 5.9 and MI 61-101.
Electric Royalties (TSXV:ELEC)(OTCQB:ELECF) ha annunciato che Gleason & Sons ha scelto di convertire C$217,479.02 di interessi maturati sul credito convertibile dell'azienda in 1,279,288 azioni ordinarie. Il prezzo di conversione è fissato a C$0.17 per azione. Questa transazione, soggetta all'approvazione della TSX Venture Exchange, dovrebbe essere completata nel settembre 2024.
La conversione è trattata come una transazione 'Azioni per Debito' secondo la Politica TSXV 4.3. Le nuove azioni emesse avranno restrizioni di rivendita, inclusi un periodo di blocco di quattro mesi e un giorno secondo le leggi canadesi sui valori mobiliari e un periodo di blocco di sei mesi secondo le leggi statunitensi sui valori mobiliari. La transazione è esente dai requisiti di transazione tra parti correlate secondo la Politica TSXV 5.9 e MI 61-101.
Electric Royalties (TSXV:ELEC)(OTCQB:ELECF) ha anunciado que Gleason & Sons ha decidido convertir C$217,479.02 de intereses acumulados de la línea de crédito convertible de la empresa en 1,279,288 acciones ordinarias. El precio de conversión se establece en C$0.17 por acción. Esta transacción, sujeta a la aprobación de la TSX Venture Exchange, se espera que se complete en septiembre de 2024.
La conversión se considera una transacción de 'Acciones por Deuda' bajo la Política TSXV 4.3. Las nuevas acciones emitidas tendrán restricciones de reventa, incluyendo un período de retención de cuatro meses y un día bajo las leyes canadienses de valores y un período de retención de seis meses bajo las leyes de valores de EE.UU. La transacción está exenta de los requisitos de transacción entre partes relacionadas según la Política TSXV 5.9 y MI 61-101.
Electric Royalties (TSXV:ELEC)(OTCQB:ELECF)는 Gleason & Sons가 회사의 전환신용 시설에서 발생한 이자 C$217,479.02를 1,279,288 보통주로 전환하기로 결정했다고 발표했습니다. 전환 가격은 C$0.17 per 주로 책정되었습니다. 이 거래는 TSX Venture Exchange의 승인을 받아야 하며, 2024년 9월에 완료될 것으로 예상됩니다.
전환은 TSXV 정책 4.3에 따라 '부채에 대한 주식' 거래로 간주됩니다. 새로 발행된 주식은 캐나다 증권법에 따라 4개월 1일의 보유 기간과 미국 증권법에 따라 6개월의 보유 기간을 포함한 재판매 제한이 있습니다. 이 거래는 TSXV 정책 5.9 및 MI 61-101에 따른 '관련 당사자 거래' 요구 사항으로부터 면제됩니다.
Electric Royalties (TSXV:ELEC)(OTCQB:ELECF) a annoncé que Gleason & Sons a choisi de convertir C$217,479.02 d'intérêts accumulés sur la facilité de crédit convertible de l'entreprise en 1,279,288 actions ordinaires. Le prix de conversion est fixé à C$0.17 par action. Cette transaction, soumise à l'approbation de la TSX Venture Exchange, devrait être finalisée en septembre 2024.
La conversion est considérée comme une transaction 'Actions pour Dettes' selon la Politique TSXV 4.3. Les nouvelles actions émises auront des restrictions de revente, y compris une période de blocage de quatre mois et un jour selon les lois canadiennes sur les valeurs mobilières et une période de blocage de six mois selon les lois américaines sur les valeurs mobilières. La transaction est exonérée des exigences liées aux 'transactions entre parties liées' selon la Politique TSXV 5.9 et MI 61-101.
Electric Royalties (TSXV:ELEC)(OTCQB:ELECF) hat bekannt gegeben, dass Gleason & Sons beschlossen hat, C$217,479.02 an aufgelaufenen Zinsen der Wandelschuldverschreibung des Unternehmens in 1,279,288 Stammaktien umzuwandeln. Der Umwandlungspreis liegt bei C$0.17 pro Aktie. Diese Transaktion, die der Genehmigung der TSX Venture Exchange unterliegt, soll im September 2024 abgeschlossen werden.
Die Umwandlung wird als 'Aktien gegen Schulden'-Transaktion gemäß der TSXV-Richtlinie 4.3 behandelt. Die neu ausgegebenen Aktien unterliegen Verkaufsbeschränkungen, einschließlich einer viermonatigen und einen Tag haltes Frist gemäß den kanadischen Wertpapiergesetzen sowie einer sechsmonatigen Haltefrist gemäß den US-Wertpapiergesetzen. Die Transaktion ist gemäß der TSXV-Richtlinie 5.9 und MI 61-101 von den Anforderungen an 'Transaktionen mit nahestehenden Personen' ausgenommen.
- Conversion of debt to equity, potentially improving the company's balance sheet
- Demonstrates lender's confidence in the company by converting interest to shares
- Dilution of existing shareholders' ownership due to issuance of new shares
- Conversion price of C$0.17 per share may be below current market price, potentially indicating undervaluation
VANCOUVER, BC / ACCESSWIRE / August 28, 2024 / Electric Royalties Ltd. (TSXV:ELEC)(OTCQB:ELECF) ("Electric Royalties" or the "Company") announces that Gleason & Sons LLC (the "Lender") has elected to convert C
The Interest Conversion is treated as a "Shares for Debt" transaction under Policy 4.3 of the TSX Venture Exchange (the "TSXV"), and the Interest shall be settled in consideration for the Conversion Shares, upon the terms of the A&R Agreement. Completion of the Interest Conversion is subject to the approval of the TSX Venture Exchange. All of the Conversion Shares issuable in connection with the Interest Conversion will bear applicable resale legends restricting the transfer of said Conversion Shares, including for a period of four months and one day from the distribution date under Canadian securities laws, and for a period of six months under U.S. securities laws.
The "related party transaction" requirements under Policy 5.9 of the TSXV and Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101") do not apply as the Interest Conversion meets the exemption set forth under Section 5.1(h)(iii) of MI 61-101.
About Electric Royalties Ltd.
Electric Royalties is a royalty company established to take advantage of the demand for a wide range of commodities (lithium, vanadium, manganese, tin, graphite, cobalt, nickel, zinc and copper) that will benefit from the drive toward electrification of a variety of consumer products: cars, rechargeable batteries, large scale energy storage, renewable energy generation and other applications.
Electric vehicle sales, battery production capacity and renewable energy generation are slated to increase significantly over the next several years and with it, the demand for these targeted commodities. This creates a unique opportunity to invest in and acquire royalties over the mines and projects that will supply the materials needed to fuel the electric revolution.
Electric Royalties has a growing portfolio of 40 royalties in lithium, vanadium, manganese, tin, graphite, cobalt, nickel, zinc and copper across the world. The Company is focused predominantly on acquiring royalties on advanced stage and operating projects to build a diversified portfolio located in jurisdictions with low geopolitical risk, which offers investors exposure to the clean energy transition via the underlying commodities required to rebuild the global infrastructure over the next several decades toward a decarbonized global economy.
For further information, please contact:
Brendan Yurik
CEO, Electric Royalties Ltd.
Phone: (604) 364‐3540
Email: Brendan.yurik@electricroyalties.com
https://www.electricroyalties.com/
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange), nor any other regulatory body or securities exchange platform, accepts responsibility for the adequacy or accuracy of this release.
Cautionary Statements Regarding Forward-Looking Information and Other Company Information
This news release includes forward-looking information and forward-looking statements (collectively, "forward-looking information") with respect to the Company within the meaning of Canadian securities laws. This news release includes information regarding other companies and projects owned by such other companies in which the Company holds a royalty interest, based on previously disclosed public information disclosed by those companies and the Company is not responsible for the accuracy of that information, and that all information provided herein is subject to this Cautionary Statement Regarding Forward-Looking Information and Other Company Information. Forward looking information is typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. This information represents predictions and actual events or results may differ materially. Forward-looking information may relate to the Company's future outlook and anticipated events and may include statements regarding the financial results, future financial position, expected growth of cash flows, business strategy, budgets, projected costs, projected capital expenditures, taxes, plans, objectives, industry trends and growth opportunities of the Company and the projects in which it holds royalty interests.
While management considers these assumptions to be reasonable, based on information available, they may prove to be incorrect. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company or these projects to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks, uncertainties and other factors include, but are not limited to risks associated with general economic conditions; adverse industry events; marketing costs; loss of markets; future legislative and regulatory developments involving the renewable energy industry; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the mining industry generally, recent market volatility, income tax and regulatory matters; the ability of the Company or the owners of these projects to implement their business strategies including expansion plans; competition; currency and interest rate fluctuations, and the other risks.
The reader is referred to the Company's most recent filings on SEDAR+ as well as other information filed with the OTC Markets for a more complete discussion of all applicable risk factors and their potential effects, copies of which may be accessed through the Company's profile page at sedarplus.ca and at otcmarkets.com.
SOURCE: Electric Royalties Ltd.
View the original press release on accesswire.com
FAQ
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