SASKATOON, SK, July 6, 2023
/CNW/ - Royal Helium Ltd. (TSXV: RHC) (OTCQB: RHCCF)
("Royal" or the "Company") announces that in
accordance with the terms of the issued and outstanding
$5,350,000 14.0% Senior Unsecured
Convertible Debentures due December 31,
2025, issued on February 8,
2023 (the "Convertible Debentures") and the terms of
a debenture indenture entered into between the Company and
Computershare Trust Company of Canada (the "Trustee") dated
February 8, 2023 (the "Debenture
Indenture"), the Company has elected to issue 822,044 common
shares in the capital of the Company (the "Common Shares")
at a deemed price of $0.3545 to the
debentureholders as payment for $291,414.51 in interest owing on the Convertible
Debentures.
Under the terms of the Debenture Indenture, interest on the
Convertible Debentures is payable semi-annually and the first
interest payment will include interest accrued from and including
February 8, 2023, which will be equal
to $54.47 for each $1,000 principal amount of Convertible
Debentures. Under the Debenture Indenture, the Company shall have
the right, from time to time (including following conversion, at
the time of redemption or at the time of maturity), to make a
Common Share interest payment election in respect of any interest
obligation under the Debenture Indenture by delivering a notice
(the "Notice") to the Trustee no later than the earlier of:
(i) the date required by applicable law or the rules of any stock
exchange on which the Convertible Debentures or Common Shares are
then listed; and (ii) the day which is 15 business days prior to
the interest payment date to which the Common Share interest
payment election relates. The Notice shall provide that all or a
portion of such interest obligation may be paid by the Company in
Common Shares by the delivery of Common Shares, as provided in the
Debenture Indenture, in an amount equal to (A) the amount of
interest payable pursuant to such interest obligation divided by
(B) VWAP of the Common Shares for two trading days immediately
prior to, and the two trading days immediately following delivery
of the Notice.
The issuance of the Common Shares as payment for interest owing
on the Convertible Debentures was subject to the terms and
conditions of the Debenture Indenture as well as the receipt of all
requisite approvals, including, without limitation, the approval of
the TSX Venture Exchange.
About Royal Helium Ltd.
Royal is an exploration, production and infrastructure company
with a primary focus on the development and production of helium.
The Company controls over 1,000,000 acres of prospective helium
permits and leases across southern Saskatchewan and southeastern Alberta. Given the current and foreseeable
global undersupplied nature of this critical and non-renewable
product, Royal is well positioned to be a leading North American
producer of this increasingly high value commodity.
Royal's helium reservoirs are carried primarily with nitrogen.
Nitrogen is not considered a greenhouse gas (GHG) and therefore has
a low GHG footprint when compared to other jurisdictions that rely
on large scale natural gas production for helium extraction. Helium
extracted from wells in Saskatchewan and Alberta can be up to 90% less carbon intensive
than helium extraction processes in other jurisdictions.
Andrew
Davidson
President and Chief Executive
Officer
Royal Helium
Ltd.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
INFORMATION
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this news release.
This news release includes certain statements that may be
deemed to be "forward-looking statements". All statements in news
this release, other than statements of historical facts, that
address events or developments that management of the Company
expects, are forward-looking statements, including, the Company's
intended use of the net proceeds of the Offering. Although
management believes 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. The Company undertakes no
obligation to update these forward-looking statements if
management's beliefs, estimates or opinions, or other factors,
should change. Factors that could cause actual results to differ
materially from those in forward-looking statements, include market
prices, exploration and development successes, continued
availability of capital and financing, and general economic, market
or business conditions. Please see the public filings of the
Company at www.sedar.com for further information.
SOURCE Royal Helium Ltd.