IBC Advanced Alloys Announces Amendment of Existing Credit Facilities

Rhea-AI Summary

IBC Advanced Alloys (IAALF) has amended its existing credit facilities with Chairman and CEO Mark Smith, extending the maturity dates to December 31, 2025. The amendments increase the available principal amount by US$452,500, which was advanced on May 1, 2025. The total outstanding principal under the agreements now stands at approximately US$2.9 million, with an unchanged interest rate of 10% per annum. The amendments require TSX Venture Exchange approval and are exempt from formal valuation and minority shareholder approval requirements under MI 61-101 as they constitute related party transactions on reasonable commercial terms.

Positive

• Extension of loan maturity dates provides additional financial flexibility until December 31, 2025
• Additional funding of US$452,500 strengthens company's liquidity
• Maintained existing 10% interest rate despite market conditions

Negative

• High interest rate of 10% indicates significant borrowing costs
• Increased debt burden with total outstanding principal reaching US$2.9 million
• Related party transaction with CEO as lender could signal limited external financing options

FRANKLIN, IN / ACCESS Newswire / June 10, 2025 / IBC Advanced Alloys Corp. ("IBC" or the "Company") (TSX-V:IB)(OTCQB:IAALF) is pleased to announce that it has entered into amendments (the "Amendments") with Mr. Mark Smith (the "Lender"), Chairman and Chief Executive Officer of the Company, to extend the maturity dates of two existing credit facility agreements (the "Existing Loan Agreements") with the Lender until December 31, 2025 and to increase the aggregate principal amount available to the Company under the Existing Loan Agreements by US$452,500. All other terms of the Existing Loan Agreements, including the interest rate of 10 percent per annum, remain as described in the Company's press releases dated August 19, 2022, June 19, 2023, October 3, 2023, and December 31, 2024.

The additional principal amount of US$452,500 was advanced by the Lender on May 1, 2025, subject to entry into the Amendments. As of the date hereof, there is approximately US$2.9 million in principal outstanding under the Existing Loan Agreements, as amended. The Amendments are subject to the approval of the TSX Venture Exchange (the "TSX-V").

The Amendments involve a related party (as such term is defined under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101")), specifically a director and senior officer of the Company, and constitute related party transactions under MI 61-101. These transactions are exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 pursuant to sections 5.5(b) and 5.7(1)(f) of MI 61-101, as the Company is not listed on the markets specified by section 5.4(b) of MI 61-101, and the Amendments are on reasonable commercial terms and not convertible into or repayable in equity or voting securities of the Company.

For more information on IBC and its innovative alloy products, go here.

On Behalf of the Board of Directors:

"Mark A. Smith"

Mark A. Smith, Chairman of the Board

# # #

Contact:

Mark A. Smith, Chairman of the Board

Jim Sims, Director of Investor and Public Relations
+1 (303) 503-6203
Email: jim.sims@ibcadvancedalloys.com

Website: www.ibcadvancedalloys.com

@IBCAdvanced $IB $IAALF #copper

About IBC Advanced Alloys Corp.

IBC is a leading advanced copper alloys manufacturer serving a variety of industries such as defense, aerospace, automotive, telecommunications, precision manufacturing, and others. At its vertically integrated production facility in Franklin, Indiana, IBC manufactures and distributes a variety of copper alloys as castings and forgings, including beryllium copper, chrome copper, and aluminum bronze. The Company's common shares are traded on the TSX-V under the symbol "IB" and the OTCQB under the symbol "IAALF".

Cautionary Statements Regarding Forward Looking Statements

Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.

Certain information contained in this news release may be forward-looking information or forward-looking statements as defined under applicable securities laws. Forward-looking information and forward-looking statements are often, but not always identified by the use of words such as "expect", "anticipate", "believe", "foresee", "could", "estimate", "goal", "intend", "plan", "seek", "will", "may" and "should" and similar expressions or words suggesting future outcomes. This news release includes forward-looking information and statements pertaining to, among other things, receipt of TSXV approval of the Amendments. Forward-looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control including: the risk that the Company may not be able to make sufficient payments to retire its debt, including the Existing Loan Agreements, the impact of general economic conditions in the areas in which the Company or its customers operate, including the semiconductor manufacturing and oil and gas industries, risks associated with manufacturing activities, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, limited availability of raw materials, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities. As a result of these risks and uncertainties, the Company's future results, performance or achievements could differ materially from those expressed in these forward-looking statements. All statements included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on assumptions made by the Company based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances.

Please see "Risks Factors" in our Annual Information Form available under the Company's profile at www.sedarplus.ca, for information on the risks and uncertainties associated with our business. Readers should not place undue reliance on forward-looking information and statements, which speak only as of the date made. The forward-looking information and statements contained in this release represent our expectations as of the date of this release. We disclaim any intention or obligation or undertaking to update or revise any forward-looking information or statements whether as a result of new information, future events or otherwise, except as required under applicable securities laws.

SOURCE: IBC Advanced Alloys Corp.

View the original press release on ACCESS Newswire

FAQ

What changes were made to IBC Advanced Alloys' (IAALF) credit facilities in June 2025?

IBC Advanced Alloys extended the maturity dates of its credit facilities to December 31, 2025, and increased the available principal amount by US$452,500, while maintaining a 10% annual interest rate.

How much is IBC Advanced Alloys' (IAALF) total outstanding debt under the amended credit facilities?

The total outstanding principal under the amended credit facilities is approximately US$2.9 million.

Who is the lender in IBC Advanced Alloys' (IAALF) credit facility amendments?

The lender is Mark Smith, who serves as the Chairman and Chief Executive Officer of IBC Advanced Alloys.

What is the interest rate on IBC Advanced Alloys' (IAALF) amended credit facilities?

The interest rate remains unchanged at 10 percent per annum.

Why don't the credit facility amendments require minority shareholder approval?

The amendments are exempt from minority shareholder approval under MI 61-101 as they are on reasonable commercial terms and not convertible into equity or voting securities.