IBC Advanced Alloys Announces Election to Issue Shares in Satisfaction of Debenture Interest Payment Obligations

Rhea-AI Summary

IBC Advanced Alloys Corp. (OTCQB:IAALF) has announced the issuance of common shares to satisfy approximately C$152,978.75 in interest payments due on its debentures on December 31, 2022. This action pertains to its 9.50% and 8.25% unsecured debentures due June 6, 2023. The share price will be based on the average trading price over the 20 days leading up to the payment date, ensuring it meets minimum market price requirements. This decision is subject to the approval of the TSX Venture Exchange.

Positive

• Issuance of shares instead of cash preserves cash flow.
• Potentially favorable trading conditions if share price meets market expectations.

Negative

• The company is unable to pay interest in cash, indicating potential liquidity issues.

FRANKLIN, IN / ACCESSWIRE / November 30, 2022 / IBC Advanced Alloys Corp. ("IBC" or the "Company") (TSXV:IB)(OTCQB:IAALF) announces that in accordance with the terms of a debenture indenture entered into between the Company and Computershare Trust Company of Canada ("Computershare") dated June 6, 2018, as supplemented (the "Debenture Indenture") and the terms of a convertible debenture indenture entered into between the Company and Computershare dated June 6, 2018, as supplemented (the "Convertible Debenture Indenture" and together with the Debenture Indenture, the "Indentures"), it has elected to issue common shares in the capital of the Company ("Common Shares") to holders of 9.50% unsecured debentures due June 6, 2023 (the "9.50% Debentures") and 8.25% convertible unsecured debentures due June 6, 2023 (the "8.25% Debentures" and together with the 9.50% Debentures, the "Debentures"), respectively, in satisfaction of up to an aggregate total of approximately C$152,978.75 interest payable to holders of Debentures on December 31, 2022 (the "Payment Date"), assuming no further conversions of 8.25% Debentures.

Further to the short-form prospectus dated May 28, 2018 qualifying the distribution of the Debentures, the price of the Common Shares will be based on the volume-weighted average trading price per Common Share for the 20 consecutive trading days on the TSX Venture Exchange (the "TSXV") ending on fifth day prior to the Payment Date, being the 20 consecutive trading days from November 28, 2022 to December 23, 2022, provided that such price is not less than the closing market price on December 23, 2022.

The issuance of the Common Shares in lieu of cash is subject to the terms and conditions of the Indentures as well as the receipt of all requisite approvals, including, without limitation, the approval of the TSXV.

For more information on IBC and its innovative alloy products, go here.

On Behalf of the Board of Directors:

"Mark Smith"
Mark Smith, CEO & Chairman

# # #

Contact:

Mark A. Smith, CEO & Chairman
Jim Sims, Director of Investor and Public Relations
+1 (303) 503-6203
Email: jsims@policycom.com
Website: www.ibcadvancedalloys.com
@IBCAdvanced $IB $IAALF #Beryllium #Beralcast

About IBC Advanced Alloys Corp.

IBC is a leading beryllium and copper advanced alloys company serving a variety of industries such as defense, aerospace, automotive, telecommunications, precision manufacturing, and others. IBC's Copper Alloys Division manufactures and distributes a variety of copper alloys as castings and forgings, including beryllium copper, chrome copper, and aluminum bronze. IBC's Engineered Materials Division makes the Beralcast^® family of alloys, which can be precision cast and are used in an increasing number of defense, aerospace, and other systems, including the F-35 Joint Strike Fighter. IBC's has production facilities in Indiana, Massachusetts, Pennsylvania, and Missouri. The Company's common shares are traded on the TSX Venture Exchange under the symbol "IB" and the OTCQB under the symbol "IAALF".

Cautionary Statements

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of this news release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Certain information contained in this news release may be forward-looking information or forward-looking statements as defined under applicable securities laws. Forward-looking information and forward-looking statements are often, but not always identified by the use of words such as "expect", "anticipate", "believe", "foresee", "could", "estimate", "goal", "intend", "plan", "seek", "will", "may" and "should" and similar expressions or words suggesting future outcomes. This news release includes forward-looking information and statements pertaining to, among other things, the price of the Common Shares to be issued in lieu of cash. Forward-looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control including: the impact of general economic conditions in the areas in which the Company or its customers operate, including the semiconductor manufacturing and oil and gas industries, risks associated with manufacturing activities, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, limited availability of raw materials, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities. As a result of these risks and uncertainties, the Company's future results, performance or achievements could differ materially from those expressed in these forward-looking statements. All statements included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on assumptions made by the Company based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances.

Please see "Risks Factors" in our Annual Information Form available under the Company's profile at www.sedar.com, for information on the risks and uncertainties associated with our business. Readers should not place undue reliance on forward-looking information and statements, which speak only as of the date made. The forward-looking information and statements contained in this release represent our expectations as of the date of this release. We disclaim any intention or obligation or undertaking to update or revise any forward-looking information or statements whether as a result of new information, future events or otherwise, except as required under applicable securities laws.

SOURCE: IBC Advanced Alloys Corp.

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FAQ

What is the recent announcement from IBC Advanced Alloys Corp. regarding IAALF?

IBC Advanced Alloys Corp. announced the issuance of common shares to fulfill C$152,978.75 in interest payments on its debentures due on December 31, 2022.

What are the terms of the debentures for IBC Advanced Alloys Corp.?

The company has 9.50% unsecured debentures and 8.25% convertible unsecured debentures, both due June 6, 2023.

How will the share price be determined for the common shares issued by IBC?

The share price will be based on the volume-weighted average trading price over 20 consecutive trading days ending five days before the payment date.

What does the issuance of common shares indicate about IBC Advanced Alloys Corp.'s financial situation?

It may indicate liquidity issues, as the company is issuing shares to pay interest instead of using cash.

When is the interest payment date for IBC Advanced Alloys Corp.'s debentures?

The interest payment date is December 31, 2022.