Scorpio Gold - Interest to Debenture Holders in Shares

Rhea-AI Summary

Scorpio Gold Corporation (TSXV:SGN) announced on October 19, 2020, that it will settle its semi-annual interest payment of $471,000 (US$357,767) on its secured subordinated convertible debentures by issuing 2,616,666 common shares at a price of $0.18 per share. This decision follows the approval from the TSX Venture Exchange. The issuance of shares helps the company manage its cash flow while fulfilling its debt obligations.

Positive

• Successful approval from TSX Venture Exchange for the share issuance.
• Issue of 2,616,666 common shares at $0.18 aids cash flow management.

Negative

• The company's reliance on share issuance for interest payments may indicate liquidity issues.

VANCOUVER, BC / ACCESSWIRE / October 26, 2020 / Scorpio Gold Corporation ("Scorpio Gold" or the "Company") (TSXV:SGN) elected to settle its semi-annual interest payment on its US$7,175,000 secured subordinated convertible debentures by the issue of common shares at $0.18 per share as announced on October 19, 2020. Having now received the approval of the TSX Venture Exchange the Company has issued a total of 2,616,666 common shares to settle its semi-annual interest payment of $471,000 (US$357,767).

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

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FAQ

What is Scorpio Gold's recent interest payment announcement?

Scorpio Gold has decided to settle a $471,000 interest payment on its convertible debentures by issuing 2,616,666 common shares at $0.18 each.

How much is Scorpio Gold's secured subordinated convertible debenture?

Scorpio Gold's secured subordinated convertible debenture amounts to $7,175,000.

What was the approval received from the TSX Venture Exchange?

Scorpio Gold received approval from the TSX Venture Exchange to issue shares for settling its semi-annual interest payment.

What impact does share issuance have on Scorpio Gold?

The issuance of shares may dilute the ownership but helps the company manage its cash flow amid financial obligations.

When was the announcement regarding the interest payment made?

The announcement regarding the interest payment was made on October 19, 2020.