Electric Royalties Announces Interest Conversion Under Convertible Credit Facility

Vancouver, BC / ACCESSWIRE / May 31, 2024 / Electric Royalties Ltd. (TSXV:ELEC)(OTCQB:ELECF) has announced that Gleason & Sons LLC has elected to convert C$578,176.37 of accrued interest on the principal amount of the company's convertible credit facility. This conversion will result in the issuance of 2,753,220 common shares at a conversion price of C$0.21 per share, subject to the approval of the TSX Venture Exchange (TSXV).

The interest conversion will be classified as a "Shares for Debt" transaction under TSXV Policy 4.3. Shares issued will bear resale restrictions for four months and one day under Canadian law, and six months under U.S. law, pending TSXV acceptance.

The transaction is exempt from related party transaction requirements under TSXV Policy 5.9 and Multilateral Instrument 61-101, as it meets the criteria set out in Section 5.1(h)(iii) of MI 61-101.