Electric Royalties Announces C$500,000 Drawdown Under Convertible Credit Facility
Electric Royalties Announces C$500,000 Drawdown Under
Convertible Credit Facility
VANCOUVER, BC / ACCESSWIRE / April 21, 2023 / Electric Royalties Ltd.
(TSXV:ELEC)(OTCQB:ELECF) ("Electric Royalties" or the "Company") is pleased to
announce, further to its April 20, 2023 press release, that it has elected to draw down C$500,000
(the "Loan") under the C$5,000,000 convertible credit facility with Gleason & Sons LLC (the
"Lender"), which is controlled by a significant shareholder.
The Loan has a term of 3 years and bears interest ("Interest") at a floating rate (Secured
Overnight Financing Rate (or "SOFR") + 7%), with a maximum interest rate of 12.5%, with
Interest payments capitalized into the principal amount and due at the end of the Loan term. At
the discretion of the Lender, after six months from the initial drawdown date, the Loan plus
accrued Interest is convertible into common shares of Electric Royalties as follows: (a) for the
Loan at the greater of C$0.50; a 100% premium above the 30-day VWAP (C$0.71) of
Company's shares on the TSX Venture Exchange (the "TSXV") at the advance; and the
minimum price acceptable to the TSXV, per share; and (b) for Interest at the Market Price(as
defined under Exchange policy 1.1) at the time of settlement, subject to the Market Price not
being less than the Conversion Price without prior Exchange approval, per share. The Lender
will not be able to hold more than 19.99% of the issued and outstanding shares of the Company
unless disinterested shareholder approval has been obtained. The funds will be used for the
acquisition of the Kenbridge nickel royalty. The Loan is subject to the approval of the TSXV and
other customary closing conditions.
The Credit Facility is a "related party transaction" within the meaning of Multilateral Instrument
61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The
Credit Facility is exempt from the valuation requirement of MI 61-101 by virtue of the
exemption contained in section 5.5(b) as the Company's common shares are not listed on a
specified market and from the minority shareholder approval requirements of MI 61-101 by
virtue of the exemption contained in section 5.7(a) of MI 61-101 in that the fair market value of
Credit Facility does not exceed 25% of the Company's market capitalization.
About Electric Royalties Ltd.
Electric Royalties is a royalty company established to take advantage of the demand for a wide
range of commodities (lithium, vanadium, manganese, tin, graphite, cobalt, nickel, zinc and
copper) that will benefit from the drive toward electrification of a variety of consumer products:
cars, rechargeable batteries, large scale energy storage, renewable energy generation and other
applications.
Electric vehicle sales, battery production capacity and renewable energy generation are slated to
increase significantly over the next several years and with it, the demand for these targeted
commodities. This creates a unique opportunity to invest in and acquire royalties over the mines
and projects that will supply the materials needed to fuel the electric revolution.
Electric Royalties has a growing portfolio of 21 royalties, including two royalties that currently
generate revenue. The Company is focused predominantly on acquiring royalties on advanced
stage and operating projects to build a diversified portfolio located in jurisdictions with low
geopolitical risk, which offers investors exposure to the clean energy transition via the
underlying commodities required to rebuild the global infrastructure over the next several
decades towards a decarbonized global economy.
For further information, please contact:
Brendan Yurik
CEO, Electric Royalties Ltd.
Phone: (604) 364‐3540
Email: [email protected]
www.electricroyalties.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined
in the policies of the TSX Venture Exchange), nor any other regulatory body or securities
exchange platform, accepts responsibility for the adequacy or accuracy of this release.
Cautionary Statements Regarding Forward-Looking Information and Other Company
Information
This news release includes forward-looking information and forward-looking statements
(collectively, "forward-looking information") with respect to the Company within the meaning of
Canadian securities laws. This news release includes information regarding other companies
and projects owned by such other companies in which the Company holds a royalty interest,
based on previously disclosed public information disclosed by those companies and the
Company is not responsible for the accuracy of that information, and that all information
provided herein is subject to this Cautionary Statement Regarding Forward-Looking Information
and Other Company Information. Forward looking information is typically identified by words
such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are
those, which, by their nature, refer to future events. This information represents predictions and
actual events or results may differ materially. Forward-looking information may relate to the
Company's future outlook and anticipated events and may include statements regarding the
financial results, future financial position, expected growth of cash flows, business strategy,
budgets, projected costs, projected capital expenditures, taxes, plans, objectives, industry trends
and growth opportunities of the Company and the projects in which it holds royalty interests.
While management considers these assumptions to be reasonable, based on information
available, they may prove to be incorrect. Forward-looking statements involve known and
unknown risks, uncertainties and other factors which may cause the actual results, performance
or achievements of the Company or these projects to be materially different from any future
results, performance or achievements expressed or implied by the forward-looking statements.
These risks, uncertainties and other factors include, but are not limited to risks associated with
general economic conditions; adverse industry events; marketing costs; loss of markets; future
legislative and regulatory developments involving the renewable energy industry; inability to
access sufficient capital from internal and external sources, and/or inability to access sufficient
capital on favourable terms; the mining industry generally, the Covid-19 pandemic, recent
market volatility, income tax and regulatory matters; the ability of the Company or the owners of
these projects to implement their business strategies including expansion plans; competition;
currency and interest rate fluctuations, and the other risks.
The reader is referred to the Company's most recent filings on SEDAR as well as other
information filed with the OTC Markets for a more complete discussion of all applicable risk
factors and their potential effects, copies of which may be accessed through the Company's
profile page at www.sedar.com and at otcmarkets.com.
SOURCE: Electric Royalties, Ltd.