Saad Ullah
Nio Strategic Metals Inc. has entered into shares for debt agreements to eliminate $495,000 of outstanding debt by issuing 11,000,001 common shares at $0.045 per share, pending TSX Venture Exchange approval.
NIO Converts $450,000 Loan to Equity
Nio Strategic Metals Inc. (NIO) (OTC Pink: NIOCF), a critical mineral exploration company, announced today that it plans to enter into share-for-debt agreements to satisfy an aggregate of $495,000 of the Corporation's outstanding debt. The company intends to issue 11,000,001 common shares at a deemed price of $0.045 per share, subject to approval from the TSX Venture Exchange (TSXV).
The Corporation has agreed on a share for debt conversion agreement with Nio-Metals Holdings LLC to convert the outstanding principal of a loan dated February 17, 2021, in the amount of $450,000. This conversion will be executed at a price of $0.045 per share, resulting in the issuance of 10,000,000 shares.
NIO Settles $45,000 in Services Fees with Directors and CFO
In addition to the loan conversion, NIO has entered into debt conversion agreements for services with four current directors and its Chief Financial Officer. These agreements will settle unpaid accrued service fees totaling $45,000, converted into shares at $0.045 per share. This arrangement will result in an additional 1,000,001 shares being issued for services rendered between July 1, 2024, and April 10, 2025.
The Board of Directors and Management believe these agreements will significantly improve the Corporation's financial position, as NIO will no longer carry any debt on its balance sheets except for usual short-term accrued payables. Both agreements are considered to be in the best interests of the company as they will help preserve its cash position.
NIO Discloses Related Party Transactions Under MI 61-101
The debt conversion agreements constitute Related Party Transactions within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). NIO is relying on exemptions from the valuation and minority shareholder approval requirements contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the fair market value of the shares for debt transaction with insiders does not exceed 25% of the Corporation's market capitalization.
The Corporation did not file a material change report regarding the related party transaction at least 21 days before the closing of the debt settlement. NIO deems this reasonable given the circumstances, as the Corporation wishes to improve its financial position by reducing its existing liabilities promptly.
The issuance of the shares remains subject to TSXV approval. Once issued, the shares will be subject to a four-month hold period pursuant to applicable securities regulations and TSXV policies.
NIO Insider Ownership to Reach 45.9% Following Debt Conversion
In connection with the debt conversion agreement, Nio-Metals Holdings LLC will receive 10,000,000 shares. Following this transaction, the Insider will own or control 46,658,211 shares, representing approximately 45.9% of NIO's issued and outstanding shares on an undiluted basis.
The Insider has indicated that it holds the shares for investment purposes and may evaluate this investment on an ongoing basis considering various factors, including the Corporation's financial position, share price levels, securities market conditions, economic conditions, and the Corporation's business or financial condition. Based on these evaluations, the Insider may increase, decrease, or otherwise change its ownership of NIO shares or other securities.
About NIO Strategic Metals
Nio Strategic Metals is an exploration and development company focused on becoming a ferroniobium producer. The Corporation holds niobium properties located in Oka and near Mont-Laurier, as well as another exploration property in the Province of Québec.
The company notes that neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this press release. Additionally, this news release does not constitute an offer to sell or a solicitation of an offer to buy any securities in any jurisdiction.
NIO has included cautionary statements regarding forward-looking information, noting that such statements involve risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied by forward-looking statements.
Saad Ullah
