Elysee Redeems $1,685,000 of Convertible Debentures

Rhea-AI Summary

Elysee Development Corp (ASXSF) prepaid and redeemed most of its 8% unsecured convertible debentures on December 16, 2025, paying $2,106,250 (including accrued interest) to settle debentures with an aggregate principal of $1,685,000. Remaining debentures outstanding are $265,000. The company expects reduced potential dilution from conversions and lower annual interest expense going forward, offset by a one-time cash charge of $421,250 recorded in the current period. Elysee's cash balance after the redemption is approximately $5 million.

Corporate updates: Probe Gold received a takeover offer at a 39% premium, and Solgold agreed to be taken over by Jiangxi Copper for about US$1.12 billion (≈28 GB pence per share). Elysee also granted 250,000 incentive stock options exercisable at $0.50 with immediate vesting.

Positive

• Debenture redemption: $1,685,000 principal settled
• Cash paid including interest: $2,106,250
• Outstanding debentures reduced to $265,000
• Post-redemption cash balance ~$5 million

Negative

• One-time cash charge of $421,250 to earnings
• Immediate vesting of 250,000 stock options at $0.50 (dilution risk)

Vancouver, British Columbia--(Newsfile Corp. - December 17, 2025) - Elysee Development Corp. (TSXV: ELC) (FSE: QLDN) (the "Company") announces that it provided notice to the holders of its 8% unsecured convertible debentures (the "Debentures") that it would prepay its obligations under the Debentures on December 16, 2025. As such, the Company has proceeded with such prepayment and paid an aggregate of $2,106,250 plus accrued interest to such holders, settling Debentures with an aggregate principal amount of $1,685,000.

As of today, the amount outstanding of the Debentures is $265,000. As a result of this redemption, potential dilution from future conversion to equity has been dramatically reduced as well as the Company's annual interest expense moving forward. There will, however, be a one-time cash charge of $421,250 on the Company's statement of earnings during the current period. After the redemption of these Debentures, Elysee's cash balance is now approximately $5 million.

Corporate Update

The Company is also pleased to report that Probe Gold Inc., one of Elysee's top ten investments by value, has received a take-over offer from Fresnillo Plc at a premium of 39% compared to their closing stock price before the offer.

In addition, another one of our investments, Solgold Plc, has agreed to be taken over by Jiangxi Copper for US$1.12 billion (28 GB pence per share), approximately four times the average price paid by Elysee.

Finally, the Company has also agreed to grant 250,000 incentive stock options to directors and officers of the company exercisable at a price of $0.50 per share for a period of five years from the date of grant. These options will vest immediately and are subject to the policies of the TSX Venture Exchange.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Guido Cloetens
President & Chief Executive Officer
Elysee Development Corp.
Tel: (778) 373-1562
Email: info@elyseedevelopment.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the Policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Caution Regarding Forward-Looking Statements - This news release contains certain forward-looking statements, including statements regarding the conversion of unsecured convertible debentures. These statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements. The Company does not undertake to update any forward looking statements, oral or written, made by itself or on its behalf, except as required by applicable law.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/278270

FAQ

What did Elysee (ASXSF) do with its convertible debentures on December 16, 2025?

Elysee prepaid and redeemed debentures, paying $2,106,250 to settle $1,685,000 principal, leaving $265,000 outstanding.

How does the Elysee debenture redemption affect potential dilution for ASXSF shareholders?

The redemption materially reduces potential dilution from future conversions by lowering outstanding convertible principal to $265,000.

What is the reported one-time earnings impact from Elysee's redemption (ASXSF)?

Elysee will record a one-time cash charge of $421,250 in the current period.

How much cash does Elysee (ASXSF) have after the debenture redemption?

The company reports an approximate cash balance of $5 million after the redemption.

What are the terms of the incentive stock options Elysee granted on December 17, 2025?

Elysee granted 250,000 options exercisable at $0.50 per share for five years, vesting immediately.

What takeover activity involving Elysee investments was disclosed on December 17, 2025?

Probe Gold received a takeover offer at a 39% premium, and Solgold agreed to a takeover by Jiangxi Copper for about US$1.12 billion.