Scorpio Gold Cash Conservation - Shares Issued to Debenture Holders

Rhea-AI Summary

Scorpio Gold Corporation has opted to settle its semi-annual interest payment of $441,424 on its US$7,125,000 secured subordinated convertible debentures by issuing 4,579,083 common shares at a price of $0.0964 per share. The company received approval from the TSX Venture Exchange to proceed with this settlement, which was announced on October 20, 2021 and executed on October 26, 2021. This move indicates a strategy of cash conservation amidst financial obligations.

Positive

• Issuing shares instead of cash helps conserve cash resources.
• Approval from TSX Venture Exchange is a positive regulatory step.

Negative

• Settlement of interest payments through share issuance may dilute existing shareholders' equity.

VANCOUVER, BC / ACCESSWIRE / October 28, 2021 / Scorpio Gold Corporation ("Scorpio Gold" or the "Company") (TSXV:SGN) elected to settle its semi-annual interest payment on its US$7,125,000 secured subordinated convertible debentures by the issue of common shares at $0.0964 per share as announced on October 20, 2021. Having now received the approval of the TSX Venture Exchange the Company on October 26, 2021, issued a total of 4,579,083 common shares to settle its semi-annual interest payment of $441,424 (US$357,226).

ON BEHALF OF THE BOARD
SCORPIO GOLD CORPORATION

Brian Lock,
Chief Executive Officer

Brian Lock
Tel: (604) 889-2543
Email: block@scorpiogold.com

Anthony Simone
Tel: (416) 881-5154
Email: ir@scorpiogold.com

Website: www.scorpiogold.com

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.

SOURCE: Scorpio Gold Corporation

View source version on accesswire.com:
https://www.accesswire.com/670250/Scorpio-Gold-Cash-Conservation--Shares-Issued-to-Debenture-Holders

FAQ

What was Scorpio Gold Corporation's semi-annual interest payment amount?

Scorpio Gold Corporation's semi-annual interest payment amounted to $441,424.

How many shares did Scorpio Gold issue to settle its interest payment?

Scorpio Gold issued a total of 4,579,083 common shares to settle the interest payment.

What price per share was used for the settlement by Scorpio Gold?

The price per share used for the settlement was $0.0964.

When did Scorpio Gold announce the settlement of the interest payment?

Scorpio Gold announced the settlement of the interest payment on October 20, 2021.

When was the settlement executed by Scorpio Gold?

The settlement was executed on October 26, 2021.

What type of financial instrument was involved in Scorpio Gold's settlement?

Scorpio Gold's settlement involved US$7,125,000 secured subordinated convertible debentures.