Scorpio Gold - Debentures Matured

Rhea-AI Summary

Scorpio Gold Corporation (TSX-V: SGN) has settled its final interest payment on US$7,015,000 convertible debentures by issuing 5,194,976 common shares at $0.085 each, approved by the TSX Venture Exchange. The debentures, maturing on April 26, 2022, have been settled with a total issuance of 87,687,500 common shares at US$0.08 per share. The total interest payment settled amounts to $441,573 (US$349,789).

Positive

• Settlement of US$7,015,000 debentures through common shares issuance mitigates cash outflow.
• Approval from the TSX Venture Exchange indicates compliance and regulatory support.

Negative

• Issuing 87,687,500 common shares could dilute existing shareholders' equity.

VANCOUVER, BC / ACCESSWIRE / April 26, 2022 / Scorpio Gold Corporation ("Scorpio Gold" or the "Company") (TSX-V:SGN) elected to settle its final semi-annual interest payment on its US$7,015,000 secured subordinated convertible debentures (the "Debentures") by the issue of common shares at $0.0850 per share as announced on April 21, 2022. Having received the approval of the TSX Venture Exchange, the Company today issued a total of 5,194,976 common shares to settle its final semi-annual interest payment of $441,573 (US$349,789).

As announced on March 10, 2022, the US$7,015,000 Debentures matured on April 26, 2022, and have been settled by the issuance of common shares of the Company at an issue price of US$0.08 per share for a total of 87,687,500 common shares.

ON BEHALF OF THE BOARD
SCORPIO GOLD CORPORATION

Chris Zerga,
President & Chief Executive Officer

Chris Zerga
Tel: (775) 753-4778
Email: czerga@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/698996/Scorpio-Gold--Debentures-Matured

FAQ

What happened to Scorpio Gold Corporation's convertible debentures?

Scorpio Gold Corporation settled its US$7,015,000 convertible debentures by issuing common shares upon their maturity on April 26, 2022.

How many shares did Scorpio Gold issue for its interest payment?

The Company issued a total of 5,194,976 common shares to settle its final interest payment of $441,573.

What was the issue price per share for the convertible debentures settlement?

The common shares were issued at an issue price of $0.085 each for the interest payment and $0.08 for the total debentures settlement.

What is the impact of the debentures settlement on Scorpio Gold's shareholders?

The settlement involved the issuance of common shares, which may dilute existing shareholders' equity.