Gleason & Sons Commits to Providing Electric Royalties with $10 Million Convertible Credit Facility for Acquiring Cash-Flowing Royalties

Gleason & Sons Commits to Providing Electric Royalties with $10 Million Convertible Credit Facility for Acquiring Cash-Flowing Royalties

Gleason & Sons LLC announced today it has committed to provide an expanded C$10 million convertible loan (the "Credit Facility") for Electric Royalties Ltd. (TSXV:ELEC)(OTCQB:ELECF) (the "Company") to enable the Company to capitalize on new opportunities to acquire undervalued royalties

With its maturity date to be extended two additional years to 2028, the amended Credit Facility will provide Electric Royalties with a long-term, non-dilutive source of capital to bridge the Company to positive cash flow in the near term while also providing additional financial resources to add to its existing portfolio of 22 royalty assets across nine critical metals used in the electrification of the global economy.

In addition to funding producing royalty acquisitions, the Credit Facility could also be, upon lender approval, advanced for working capital or for Company purchases of its undervalued shares on the open market pursuant to a Normal Course Issuer Bid (NCIB) filing.

Gleason & Sons is the family office of Stefan Gleason, a Charlotte-based entrepreneur who leads several privately held businesses in the United States, including Money Metals Exchange LLC. Money Metals is one of the largest precious metals dealers and depositories in North America with over C$1 billion in annual revenues.

Gleason and his affiliates are also major shareholders in Electric Royalties with a 19.99% ownership stake, in the aggregate.

"We are pleased to help Electric Royalties capitalize on today's fertile environment to acquire undervalued royalties connected with accretive battery metals projects in North America and other top-tier jurisdictions," said Stefan Gleason, managing director of Gleason & Sons.

"Electric Royalties already owns three royalties that provide revenue. And because the Company has wisely kept its overhead costs low, it is expected to reach positive cash flow in the near term - whether it be a result of closing on another producing asset from its robust deal pipeline or when another of its 22 existing royalties enters production as expected," Gleason continued.

"We applaud CEO Brendan Yurik and the Company's board for continuing to execute on their business plan without resorting to dilutive equity financings at a time when the valuation of Electric Royalties' shares on the public markets, according to independent analysis by Fundamental Research Corp., are so dramatically below their fair value."

Electric Royalties also advanced C$500,000 from the Credit Facility this week for general working capital purposes and certain due-diligence costs relating to prospective transactions. The agreed interest rate, right to accrue interest until the extended 2028 maturity date, fees, convertibility price, and other loan terms are highly favorable to the Company and its shareholders.

The loan commitment is subject to the parties entering into an Amended and Restated Loan Agreement reflecting the modified terms and the approval of the TSX Venture Exchange.

For further information, contact:

Stefan Gleason
Managing Director
Gleason & Sons LLC
15720 Brixham Hill Avenue, #205
Charlotte, NC 28277
Tel: 208-577-2230
www.GleasonSons.com

This release includes certain statements that may be deemed "forward-looking statements." All statements in this release, other than statements of historical facts, that address anticipated future events including the entering into of an amended and restated loan agreement, the potential use of proceeds of the Credit Facility, the cash flow position of Electric Royalties, the valuation and production schedule of royalties, and the pipeline of opportunities for Electric Royalties are forward-looking statements. Although the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements including as a result of the failure of the parties to enter into the amended and restated loan agreement or obtain regulatory approvals, the availability of royalties, the production of properties underlying royalties not being as anticipated, and the Company's cash flow position deteriorating as a result of business or economic conditions.

SOURCE: Gleason & Sons LLC



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