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All amounts in Canadian dollars unless otherwise stated
Electric Royalties Ltd. (TSXV: ELEC) (OTCQB: ELECF) ("Electric Royalties" or the "Company") is pleased to announce that it has entered into an agreement with Canaccord Genuity Corp. on behalf of a syndicate of agents (the "Agents") in connection with a marketed public offering up to 10,000,000 units of the Company (the "Units") at a price of $0.30 per Unit for gross proceeds of up to $3 million (the "Offering").
Each Unit will consist of one (1) common share in the capital of the Company (each a "Common Share"), and one (1) common share purchase warrant (each a "Warrant"). Each Warrant will be exercisable into one (1) Common Share (each a "Warrant Share") at an exercise price of $0.45 per Warrant Share for a period of 36 months following the closing of the Offering.
The Company has also granted the Agents an option (the "Over-Allotment Option"), exercisable in whole or in part at any time until the date that is 30 days following the closing of the Offering, to sell up to an additional 15% of the number of Units sold pursuant to the Offering on the same terms as the Units sold under the Offering.
The Offering is expected to be conducted in each of the provinces of Canada (other than Quebec ) by way of prospectus supplement (the "Prospectus Supplement") to the Company's short form base shelf prospectus dated February 28, 2022 . The Prospectus Supplement is expected to be filed with the securities commissions and other similar regulatory authorities in each of the provinces of Canada , except Quebec and will be offered in the United States on a private placement basis pursuant to one or more exemptions from the requirements of the United States Securities Act of 1933 , as amended (the "U.S. Securities Act").
The Company intends to use the net proceeds from the Offering for general corporate purposes, including funding potential future acquisitions of royalties and other interests, targeting commodities that enable the clean energy transition, such as lithium, vanadium, manganese, tin, graphite, cobalt, nickel, zinc and copper, as will be further described in the Prospectus Supplement.
The closing of the Offering is expected to occur on or about May 12, 2022 or such other date as may be mutually agreed to by the Company and the Agents, subject to satisfaction of customary closing conditions, including, but not limited, the receipt of all necessary approvals, including the conditional approval of the TSX Venture Exchange Inc. (the "TSXV") and other necessary regulatory approvals.
A copy of the Base Shelf Prospectus is available under the Company's profile on SEDAR at www.sedar.com . Once filed, the Prospectus Supplement in connection with the Offering will also be available on SEDAR.
This press release does not constitute an offer to sell or the solicitation of an offer to buy Units, nor will there be any sale of the Units in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under securities laws of any such jurisdiction.
On Behalf of the Board of Directors,
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 18 royalties, including one royalty that currently generates 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.
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. 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 in this press release relates to Closing of the Offering, use of proceeds of the Offering, TSXV approval and also 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.
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