SASKATOON, SK, Dec. 8, 2023
/CNW/ - Royal Helium Ltd. (TSXV: RHC) (TSXV: RHC.WT.A) (OTCQB:
RHCCF) ("Royal" or the "Company") announces that in
accordance with the terms of the two separate debenture indentures
entered into between the Company and Computershare Trust Company of
Canada (the "Trustee")
dated February 8, 2023 and dated
June 12, 2023 (collectively, the
"Debenture Indentures"), it has elected to issue an
aggregate of 3,938,120 common shares in the capital of the Company
(the "Common Shares") to the holders of the 14.0% Senior
Unsecured Convertible Debentures due December 31, 2025 (the "14%
Debentures") and the holders of the 12.0% Senior Unsecured
Convertible Debentures due June 30,
2025 (the "12% Debentures", together with the 14%
Debentures, the "Convertible Debentures"), as payment for
the satisfaction of the interest payment of $70.00 for each $1,000 principal amount of 14% Debentures and the
interest payment of $66.41 for each
$1,000 principal amount of 12%
Debentures.
Pursuant to the Debenture Indentures, 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 Indentures 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) the 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 will be subject to the terms and
conditions of the Debenture Indentures as well as the receipt of
all requisite approvals, including, without limitation, the
approval of the TSX Venture Exchange.
About Royal Helium Ltd.
Royal Helium is an exploration, production, and infrastructure
company with a primary focus on the development and production of
helium and associated gases. 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 Helium's helium reservoirs are carried primarily with
nitrogen. Nitrogen is not considered a greenhouse gas (GHG) and
therefore the plant has a low GHG footprint when compared to plants
in 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 issuance of
the Common Shares in settlement of the amounts owing under the
Convertible Debentures. 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.sedarplus.ca for further
information on the risks and uncertainties associated
with the Company's business. Readers should not place undue
reliance on forward-looking information and statements, which speak
only as of the date made. The forward-looking information and
statements contained in this release represent our expectations as
of the date of this release. The Company disclaims any intention or
obligation or undertaking to update or revise any forward-looking
information or statements whether as a result of new information,
future events or otherwise, except as required under applicable
securities laws.
SOURCE Royal Helium Ltd.
