KWG Gives Notice to Convert $2.54 Million of Series 2024 Convertible Debentures into Shares and Warrants

Rhea-AI Summary

KWG Resources (CSE: CACR), operating as The Canadian Chrome Company, has announced its decision to convert $2.54 million worth of Series 2024 convertible debentures into shares and warrants. The conversion will take place on August 5, 2025, following the first anniversary of the debentures' issuance.

The conversion will transform $2.5 million in principal and $43,495.70 in accrued interest into 2,119,699 Multiple Voting Shares and an equal number of warrants at a conversion price of $1.20 per unit. Each warrant will allow holders to acquire one additional Multiple Voting Share at $1.20 per share, exercisable until March 31, 2029, or within two business days of a qualifying takeover event.

Positive

• Conversion of $2.54 million in debt to equity improves the company's balance sheet structure
• The conversion price of $1.20 per unit provides potential upside through warrant exercise
• Extended warrant exercise period until March 31, 2029 offers long-term growth opportunity

Negative

• Dilution of existing shareholders through the issuance of 2,119,699 new Multiple Voting Shares
• Additional potential dilution if warrants are exercised

Toronto, Ontario--(Newsfile Corp. - July 30, 2025) - KWG Resources Inc. (CSE: CACR) (CSE: CACR.A), which carries on business as The Canadian Chrome Company ("CCC", "KWG" or the "Company") is pleased to announce that pursuant to this news release the Company is giving notice to all holders of Series 2024 convertible debentures (the "Debentures") that, as the first anniversary of the date of first issuance of the Debentures will occur on Saturday, August 2, 2025, the Company has elected to convert all principal and all accrued and unpaid interest owing on the Debentures into shares and warrants on the next following business day, Tuesday, August 5, 2025 (the "Conversion Date"). As of the Conversion Date, the aggregate of all principal and interest owing on the Debentures will be $2,543,645.70.

Under the terms of the Debentures, KWG has the option, exercisable at any time after August 2 2025, to convert the principal amount owing under the Debentures, together with accrued and unpaid interest on the amount being converted, into units (each a "Unit") at a price of $1.20 per Unit, with each such Unit being comprised of one (1) multiple voting share in the capital of the Company (each a "Multiple Voting Share") and one (1) share purchase warrant (each a "Warrant"), with each such Warrant enabling its holder to acquire one (1) further Multiple Voting Share from treasury upon payment of $1.20 per share at any time on or before the earlier of: (i) March 31, 2029, or (ii) two (2) business days after completion of a take-over bid or a merger, amalgamation, arrangement or other form of business combination as a result of which the shareholders of the Company immediately prior to the completion of such bid or business combination do not hold a majority of votes attaching to the voting securities of the Company or of the resulting issuer, as the case may be, or do not have the power to elect a majority of the directors of the Company or of the resulting issuer, as the case may be, after completion of such bid or business combination.

By issuance of this news release, KWG announces and gives notice to all holders of Debentures that, on the Conversion Date, KWG will complete the conversion of all of the principal amount of $2,500,150 of Debentures currently outstanding and $43,495.70 of accrued unpaid interest earned from April 1, 2025 to August 5, 2025, aggregating $2,543,645.70, into 2,119,699 Multiple Voting Shares and 2,119,699 Warrants.

About The Canadian Chrome Company:

KWG, which carries on business as The Canadian Chrome Company, is an exploration stage company that is focused on identification, acquisition, consolidation, exploration, development and evaluation of large-scale deposits of minerals including chromite in the Ring of Fire, as well as other base metals and strategic minerals and, where applicable, in the development of transportation and electrification links to access remote areas where these deposits may be located. The Canadian Chrome Company is a registered business style of KWG Resources Inc.

For further information, please contact:
Bruce Hodgman, Vice-President: 416-642-3575 ~ info@canadachrome.com

Forward-Looking Statements: Information set forth in this news release may involve forward-looking statements under applicable securities laws. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this document are made as of the date of this document and KWG disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation. Although management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct.

Disclaimer: Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this news release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/260598

FAQ

What is the total value of KWG Resources' Series 2024 convertible debentures being converted?

KWG Resources is converting a total of $2,543,645.70, consisting of $2.5 million in principal and $43,495.70 in accrued interest.

How many shares and warrants will CACR issue in the debenture conversion?

KWG Resources will issue 2,119,699 Multiple Voting Shares and 2,119,699 Warrants at a conversion price of $1.20 per unit.

What is the exercise price and expiration date for KWG Resources' new warrants?

The warrants have an exercise price of $1.20 per share and can be exercised until March 31, 2029, or within two business days of a qualifying takeover event.

When will KWG Resources complete the debenture conversion?

The conversion will be completed on August 5, 2025, the first business day following the first anniversary of the debentures' issuance.