CHARLOTTE, NC / ACCESSWIRE / November 16, 2022 / Gleason & Sons LLC today announced it has agreed to provide a loan of up to C$2 million (the "Loan Facility") to Electric Royalties Ltd. (TSXV:ELEC)(OTCQB:ELECF) ("Electric Royalties") to fund strategic acquisitions of producing royalties.

With loan advances convertible to common shares at a 100% premium to then-market prices, the Loan Facility provides Electric Royalties with a flexible, non-dilutive source of financing to add to its existing portfolio of 20 royalty assets across nine critical metals used in the electrification of the global economy.

Gleason & Sons is the family office of Stefan Gleason, a Charlotte-based entrepreneur who owns and leads several privately held businesses in the United States, including Money Metals Exchange LLC. Money Metals is one of the largest precious metals dealers and depositories in North America with approximately $1 billion (USD) in annual revenues.

Gleason is a major shareholder in Electric Royalties with ownership, control, or direction over nearly 17% of its issued and outstanding shares.

"We are pleased to support Electric Royalties by providing this Loan Facility to the company as it continues to acquire existing royalties and create new royalties on attractive battery metal projects in North America and other favorable jurisdictions," said Gleason, managing director of Gleason & Sons.

"With one producing royalty and several more nearing production, Electric Royalties has also established a pipeline of accretive new royalty opportunities, with ample funding being the only apparent need," Gleason continued. "Our Loan Facility gives this capable management team another tool in the toolkit to finance new deals without dilution at a share valuation that is so much lower than the company's fair value, according to independent analysis."

With an initial borrowing limit of C$2 million, the Loan Facility will be secured by new producing royalties acquired by Electric Royalties using borrowed funds, starting with the pending 0.75% gross revenue royalty announced yesterday involving the Penouta tin-tantalum mine operated by Strategic Minerals Europe Corp. (NEO: SNTA) (FRA: 26K0) (OTCQB:SNTAF) in Spain.

The Loan Facility will mature 36 months after the initial loan advance, carry a 15% interest rate, and include no origination or non-utilization fees. Electric Royalties will have the option to accrue interest payments until the maturity date.

The Loan Facility will be provided on a non-exclusive basis, affording Electric Royalties full flexibility to establish other debt or equity financing partnerships on any terms it deems favorable. Gleason & Sons expects to have additional credit capacity available beyond the initial C$2 million borrowing limit if requested by Electric Royalties.

Advances will be convertible into common shares of Electric Royalties at a conversion price of the greater of C$0.50 per common share or a 100% premium above the 30-day VWAP of Electric Royalties shares on the TSX Venture Exchange at the time of each advance.

Conversions will be at the option of Gleason & Sons, and they will be restricted such that Gleason & Sons, Stefan Gleason, and their affiliates would not gain more than 19.9% in ownership, control, or direction of Electric Royalties' issued and outstanding Shares on an as converted and partially diluted basis.

Finalization of the Loan Facility is subject to regulatory approval, if applicable, and closing documentation.

ABOUT GLEASON & SONS

Gleason & Sons is a Charlotte-based family limited liability company which holds and manages debt, equity, and real estate investments.

For further information, contact:

Stefan Gleason
Gleason & Sons LLC
15720 Brixham Hill Avenue, #205
Charlotte, NC 28277
Tel: 208-577-2230
Email: Stefan_Gleason@yahoo.com

This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address anticipated future events are forward-looking statements. Although 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.

SOURCE: Gleason & Sons LLC