/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE
SERVICES OR FOR DISSEMINATION TO THE UNITED STATES/
All amounts in Canadian dollars unless
otherwise stated
VANCOUVER, BC, May 3, 2022
/CNW/ - 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,
Brendan Yurik
CEO
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.
