Scorpio Gold - Interest to Debenture Holders in Shares

Rhea-AI Summary

Scorpio Gold Corporation has opted to settle its semi-annual interest payment on US$7,125,000 secured subordinated convertible debentures in common shares. The interest payment of C$441,424 (US$357,226) will be made on October 26, 2021, with a record date of October 19, 2021. The company plans to issue 4,581,401 common shares at an issue price of $0.0964 per share, subject to TSX Venture Exchange approval. This decision aims to manage cash flow while meeting debt obligations.

Positive

• Settlement of interest payment in common shares helps conserve cash.
• Issuance of shares may improve liquidity and financial flexibility.

Negative

• Issuing shares to settle debt may dilute existing shareholders' equity.

VANCOUVER, BC / ACCESSWIRE / October 20, 2021 / Scorpio Gold Corporation ("Scorpio Gold" or the "Company") (TSXV:SGN) has elected to settle its semi-annual interest payment due on its US$7,125,000 secured subordinated convertible debentures in common shares of the Company. The interest payment date is October 26, 2021 and the interest payment record date is October 19, 2021. Subject to the approval of the TSX Venture Exchange the Company will issue a total of 4,581,401 common shares to settle its semi-annual interest payment of C$441,424 (US$357,226) at an exchange rate of 1.2357 and an issue price of $0.0964 per share.

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/668992/Scorpio-Gold--Interest-to-Debenture-Holders-in-Shares

FAQ

What is Scorpio Gold's recent interest payment settlement for SRCRF?

Scorpio Gold is settling its recent interest payment of C$441,424 (US$357,226) on convertible debentures by issuing 4,581,401 common shares.

When is the interest payment date for Scorpio Gold's convertible debentures?

The interest payment date for Scorpio Gold's convertible debentures is October 26, 2021.

How many shares will Scorpio Gold issue for the interest payment?

Scorpio Gold will issue a total of 4,581,401 common shares to settle the interest payment.

What is the issue price per share for the interest payment by Scorpio Gold?

The issue price per share for the interest payment is $0.0964.

What is the significance of settling interest in shares for SRCRF?

Settling interest payments in shares can help conserve cash and improve the company's financial position.