Breaking News: Royal Helium Ltd. Elects to Issue Common Shares for Convertible Debenture Interest and Conversion
Saskatoon, Saskatchewan–(Newsfile Corp. – December 20, 2024) – Royal Helium Ltd. (TSXV: RHC) (OTCQB: RHCCF) (“Royal” or the “Company”)
Royal Helium Ltd. Issues Common Shares for Convertible Debenture Interest Payment and Conversion
Royal Helium Ltd., a leading helium exploration and production company, has announced a significant decision in relation to its convertible debentures. In accordance with the terms of the debenture indentures entered into between the Company and Computershare Trust Company of Canada, Royal Helium Ltd. has chosen to issue 19,446,667 common shares to the holders of the 14.0% Senior Unsecured Convertible Debentures due December 31, 2025 and the holders of the 12.0% Senior Unsecured Convertible Debentures due June 30, 2025.
The issuance of these common shares, priced at $0.030 per share, is for the satisfaction of the interest payment obligations associated with the Convertible Debentures. Holders of the 14% Debentures will receive common shares in exchange for the interest payment of $70.00 for each $1,000 principal amount of debentures, while holders of the 12% Debentures will receive common shares in exchange for the interest payment of $60.00 for each $1,000 principal amount of debentures.
This strategic move by Royal Helium Ltd. aims to optimize its capital structure and leverage the benefits of issuing common shares to meet its financial obligations. By offering equity in the company to debenture holders, Royal Helium Ltd. is taking a proactive approach to managing its debt and ensuring the long-term viability of its operations.
The decision to issue common shares for convertible debenture interest and conversion demonstrates Royal Helium Ltd.’s commitment to maintaining a stable financial position and fostering positive relationships with its stakeholders. This announcement underscores the Company’s dedication to sustainable growth and value creation for its shareholders.
How Will This Impact Me?
As an investor in Royal Helium Ltd. or a holder of the Convertible Debentures, this development could directly affect your investment portfolio. By receiving common shares in exchange for the interest payment on the debentures, you may see changes in the composition of your holdings and potential benefits in terms of equity ownership in the company.
It is important to assess the implications of this decision on your investment strategy and consider the impact on your overall financial goals. Consult with your financial advisor to understand the potential effects of this transaction on your investment position and make informed decisions based on your individual circumstances.
How Will This Impact the World?
In the broader context, Royal Helium Ltd.’s decision to issue common shares for convertible debenture interest and conversion reflects a strategic approach to financial management that could have implications beyond the company itself. By addressing debt obligations through equity issuance, Royal Helium Ltd. is setting a precedent for sustainable financial practices in the industry.
This move may influence other companies in the sector to consider innovative solutions for managing their debt levels and capital structure. The adoption of such strategies could contribute to the overall stability and resilience of the energy sector, ultimately benefiting the industry as a whole and supporting its long-term growth and development.
Conclusion
In conclusion, Royal Helium Ltd.’s decision to issue common shares for convertible debenture interest and conversion marks a significant milestone in the Company’s financial strategy. By leveraging equity issuance to meet its debt obligations, Royal Helium Ltd. is taking proactive steps to enhance its financial position and drive sustainable growth.
The impact of this decision extends beyond the individual stakeholders to the broader industry, setting a positive example for financial management practices and highlighting the importance of strategic planning in ensuring long-term success. As Royal Helium Ltd. continues to navigate its path to success, this move reaffirms the Company’s commitment to creating value for its shareholders and fostering a culture of innovation and adaptability in the energy sector.
