Champion Electric Announces its Intention to Complete a Shares for Debt Transaction
Rhea-AI Summary
Champion Electric (OTC Pink: CHELF) intends to settle $440,063.68 of debt by issuing 44,006,368 common shares at $0.01 per share. The Shares will have a four-month hold period and a 12-month contractual escrow release schedule. Completion is subject to final acceptance of the Canadian Securities Exchange.
The transaction replaces cash payments with equity, formalizes debt settlement agreements with arm's-length creditors, and imposes transfer restrictions on the issued Shares.
Positive
- Debt reduction of $440,063.68 via share issuance
- No cash outflow required to settle the specified creditors
- Issued Shares subject to 12-month escrow, limiting immediate transfer
Negative
- Issuance of 44,006,368 shares at $0.01 may materially dilute shareholders
- Share trading subject to a four-month hold, possibly reducing liquidity
- Transaction requires CSE final acceptance, creating execution risk
News Market Reaction – CHELF
In the Mar 18 session, CHELF declined 2.17%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Toronto, Ontario--(Newsfile Corp. - March 17, 2026) - Champion Electric Metals Inc. (CSE: LTHM) (OTC Pink: CHELF) (FSE: 1QB0) ("Champion Electric" or the "Company") announces that it intends to settle an aggregate of
The Company has entered into debt settlement agreements with each of the creditors. The Shares issued pursuant to the debt settlement shall be subject to a four-month hold period and completion of the transaction remains subject to final acceptance of the Canadian Securities Exchange. In addition, the Shares will be subject to a twelve (12) month contractual escrow release, beginning on the date of issuance.
About Champion Electric Metals Inc.
Champion Electric is a discovery-focused exploration company with copper, gold, and cobalt properties in Idaho, United States. The assets include the
Champion Electric strives to be a responsible environmental steward, stakeholder, and contributing citizen to the local communities where it operates, taking its social license seriously, employing local community members and service providers at its operations whenever possible.
ON BEHALF OF THE BOARD OF CHAMPION ELECTRIC
"Nicholas Konkin"
Nicholas Konkin, Interim President and CEO
To learn more, please visit the Company's SEDAR profile at www.sedarplus.ca or the Company's corporate website at www.champem.com.
For further information, please contact:
Phone: (+1) 416-744-9998
THIS PRESS RELEASE DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITIES IN ANY JURISDICTION, NOR SHALL THERE BE ANY OFFER, SALE, OR SOLICITATION OF SECURITIES IN ANY STATE IN THE UNITED STATES IN WHICH SUCH OFFER, SALE, OR SOLICITATION WOULD BE UNLAWFUL.
Cautionary Statements
Neither the Canadian Securities Exchange nor its regulation services provider has reviewed or accepted responsibility for the adequacy or accuracy of this press release. This press release may include forward-looking information within the meaning of Canadian securities legislation, concerning the business of the Company. Forward-looking information is based on certain key expectations and assumptions made by management of the Company, including closing of the Transactions and the prospectivity of the Projects for lithium. Although the Company believes that the expectations and assumptions on which such forward-looking information is based on are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that they will prove to be correct. Forward-looking statements contained in this press release are made as of the date of this press release. The Company disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
The Projects are at an early stage of exploration, and the Company cautions that the qualified persons who have reviewed and approved this news release have not verified scientific or technical information produced by third parties.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/288866