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Msg  213 of 268  at  4/22/2023 4:24:58 PM  by


 In response to msg 211 by  Gillripper
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Re: Wealth Acquired 2M Shares In Electric Royalties

Electric Royalties draws down $500K from loan facility

2023-04-21 20:02 ET - News Release

Mr. Brendan Yurik reports


Further to the April 20, 2023, press release, Electric Royalties Ltd. has elected to draw down $500,000 under the $5-million convertible credit facility with Gleason & Sons LLC, which is controlled by a significant shareholder.

The loan has a term of three years and bears interest at a floating rate (secured overnight financing rate (or SOFR) plus 7 per cent), with a maximum interest rate of 12.5 per cent, 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 50 cents, a 100-per-cent premium above the 30-day volume-weighted average price (71 cents) of the company's shares on the TSX Venture Exchange at the advance and the minimum price acceptable to the TSX-V 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 per cent 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 TSX-V 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). 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 per cent 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 through the underlying commodities required to rebuild the global infrastructure over the next several decades toward a decarbonized global economy.

We seek Safe Harbor.

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Msg # Subject Author Recs Date Posted
221 Re: Wealth Acquired 2M Shares In Electric Royalties Gillripper 0 4/25/2023 5:55:27 PM
248 Re: Wealth Acquired 2M Shares In Electric Royalties Gillripper 0 6/3/2023 10:11:45 AM

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