Electric Royalties Announces Interest Conversion Under Convertible Credit Facility
Electric Royalties Announces Interest Conversion Under
Convertible Credit Facility
VANCOUVER, BC / ACCESSWIRE / May 31, 2024 / Electric Royalties Ltd.
(TSXV:ELEC)(OTCQB:ELECF) ("Electric Royalties" or the "Company") announces that
Gleason & Sons LLC (the "Lender") has elected to convert C$578,176.37 of accrued interest on
the principal amount of the Company's convertible credit facility (the "Interest") under the
amended and restated convertible loan agreement dated February 15, 2024 between the Lender
and Company (the "A&R Agreement"), into 2,753,220 common shares of the Company (the
"Conversion Shares"), at a conversion price of C$0.21 per Conversion Share (the "Interest
Conversion"). Subject to acceptance of the TSX Venture Exchange (the "TSXV"), the Company
expects to issue the Conversion Shares in June 2024.
The Interest Conversion is treated as a "Shares for Debt" transaction under Policy 4.3 of the TSX
Venture Exchange (the "TSXV"), and the Interest shall be settled in consideration for the
Conversion Shares, upon the terms of the A&R Agreement. Completion of the Interest
Conversion is subject to the approval of the TSX Venture Exchange. All of the Conversion
Shares issuable in connection with the Interest Conversion will bear applicable resale legends
restricting the transfer of said Conversion Shares, including for a period of four months and one
day from the distribution date under Canadian securities laws, and for a period of six months
under U.S. securities laws.
The "related party transaction" requirements under Policy 5.9 of the TSXV and Multilateral
Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-
101") do not apply as the Interest Conversion meets the exemption set forth under Section
5.1(h)(iii) of MI 61-101.
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 40 royalties in lithium, vanadium, manganese, tin,
graphite, cobalt, nickel, zinc and copper across the world and interests in 32 lithium properties in
Ontario, Canada. 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 toward a decarbonized global economy.
For further information, please contact:
Brendan Yurik
CEO, Electric Royalties Ltd.
Phone: (604) 364‐3540
Email: [email protected]
https://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, 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 sedarplus.ca and at otcmarkets.com.
SOURCE: Electric Royalties Ltd.