St-Georges Receives an Offer to Acquire a Majority Stake in H2SX

Rhea-AI Summary

St-Georges Eco-Mining Corp. (CSE:SX)(OTCQB:SXOOF) has announced a significant financing agreement for its hydrogen technology subsidiary, H2SX Corp. A private Canadian company will invest $7,500,000 through a private placement of units at $0.75 per unit, including shares and warrants. Additionally, the investor will purchase 75% of St-Georges' holding in H2SX for $1,500,000.

The deal includes an initial $1,000,000 non-refundable payment within 30 days, followed by due diligence. Upon successful review, the remaining $6,500,000 will be paid. This agreement will free St-Georges from further financing obligations towards H2SX, allowing it to focus on its primary activities. H2SX plans to use the investment to accelerate its cheap and clean hydrogen (ccH2™) production technology development and deployment.

Positive

• H2SX Corp secures $7,500,000 in financing through a private placement
• St-Georges to receive $1,500,000 for selling 75% of its H2SX holding
• Deal releases St-Georges from further financing obligations for H2SX
• Investment expected to accelerate H2SX's technology development and deployment

Negative

• St-Georges reduces its ownership stake in H2SX Corp from 100% to 25%
• Deal is subject to due diligence, which could potentially delay or cancel the transaction

MONTRÉAL, QC / ACCESSWIRE / August 1, 2024 / St-Georges Eco-Mining Corp. (CSE:SX)(OTCQB:SXOOF)(FSE:85G1) is pleased to announce that its hydrogen technology subsidiary, H2SX Corp, has secured a financing agreement with a private Canadian company under a Non-Disclosure Agreement. The Investor will subscribe $7,500,000 in a private placement of units priced at $0.75 per unit. Each unit will include one common share in H2SX Corp. and one share purchase warrant, which entitles the holder to purchase one share at $1.00 within three years or at $1.50 between three to five years from the issuance date.

An initial non-refundable subscription tranche payment of $1,000,000 will be made to H2SX Corp. within 30 days. Following this first disbursement, the Investor will conduct an engineering and technical due diligence review, including a partner visit to South Korea in September 2024. Upon successful completion of the review, the remaining $6,500,000 will be paid to H2SX Corp. Additionally, the Investor has agreed to purchase 6,757,500 common shares of H2SX Corp. from St-Georges, representing 75% of St-Georges holding, in return for $1,500,000. This financing agreement will release St-Georges from any further financing and development obligations towards H2SX Corp. and its licensors. St-Georges will use the proceeds from this sale to advance its primary activities.

"(…) There is no doubt that this investment will allow us to significantly increase our activities but, above all, to demonstrate the undeniable advantages of our cheap and clean hydrogen (ccH₂™) production technology. With this investment, we are more than delighted to be able to accelerate the pace and work closely with our Korean partners. Our new Canadian partners can support us in the deployment of our solution and, together, to create tangible value for stakeholders (…)," commented Sabin Boily, CEO of H2SX.

"(…) St-Georges firmly believes in the development potential of H2SX Corp's technology and is pleased to have a significant investor to lead this initiative. The effort and investment required to take H2SX to the next level are substantial and deserve the undivided attention of a strong leadership team. St-Georges will remain an important shareholder and stakeholder in H2SX Corp. and expects to benefit significantly from their growth in the coming years (…)," commented James Passin, Director of St-Georges Eco-Mining Corp.

ON BEHALF OF THE BOARD OF DIRECTORS

"Neha Edah Tally"
Neha Edah Tally

Corporate Secretary of St-Georges Eco-Mining Corp.

About St-Georges Eco-Mining Corp.

St-Georges develops new technologies to solve some of the most common environmental problems in the mining sector, including maximizing metal recovery and full-circle battery recycling. The Company explores for nickel & PGEs and other strategic and critical minerals on the Manicouagan and Julie Projects on Quebec's North Shore, for Niobium and Rare Earth Minerals on the Notre-Dame Project in the Lac St-Jean region and has multiple exploration projects in Iceland, including the Thor Gold Project. Headquartered in Montreal, St-Georges' common shares are listed on the CSE under the symbol SX and trades on the Frankfurt Stock Exchange under the symbol 85G1 and as SXOOF on the OTCQB Venture Market for early stage and developing U.S. and international companies. Companies are current in their reporting and undergo an annual verification and management certification process. www.otcmarkets.com

Visit the Company website at https://www.stgeorgesecomining.com

For all other inquiries: public@stgeorgesecomining.com

The Canadian Securities Exchange (CSE) has not reviewed and does not accept responsibility for the adequacy or the accuracy of the contents of this release.

SOURCE: St-Georges Eco-Mining Corp.

View the original press release on accesswire.com

FAQ

What is the total investment amount H2SX Corp will receive according to the agreement?

H2SX Corp will receive a total investment of $7,500,000 through a private placement of units priced at $0.75 per unit.

How much will St-Georges Eco-Mining (SXOOF) receive for selling part of its stake in H2SX?

St-Georges will receive $1,500,000 for selling 75% of its holding in H2SX Corp to the investor.

What is the initial non-refundable payment amount and timeline for H2SX Corp?

The investor will make an initial non-refundable payment of $1,000,000 to H2SX Corp within 30 days.

What technology is H2SX Corp developing with this investment?

H2SX Corp is developing and deploying cheap and clean hydrogen (ccH2™) production technology.