Skycap Investment Holdings Inc. Announces US$4.17 Million SAFE Investment in Clean Metals

Rhea-AI Summary

Skycap Investment Holdings Inc. (CSE: SKY) has announced a US$4.17 million Simple Agreement for Future Equity (SAFE) investment in Clean Metals Recycling N.A. Inc. The SAFE will convert into equity during Clean Metals' next financing round. Clean Metals is a Canadian environmental services company focusing on metal recovery from hazardous waste, end-of-life vehicles, and industrial by-products.

The investment aligns with Skycap's strategy of investing in high-growth companies with environmental and commercial focus. Clean Metals is executing a national roll-up strategy to acquire high-margin, cash flow-positive environmental services businesses across the United States, targeting overlooked market segments often bypassed by larger competitors.

Positive

• Strategic investment of US$4.17 million in Clean Metals, a company focused on high-margin environmental services
• Investment targets high-growth sector of hazardous waste recovery and critical materials recycling
• Clean Metals has cash flow-positive business model with national expansion strategy

Negative

• None.

Toronto, Ontario--(Newsfile Corp. - May 9, 2025) - Skycap Investment Holdings Inc. (formerly Li-Metal Corp.) (CSE: SKY) (the "Company") is pleased to announce that it has entered into a Simple Agreement for Future Equity (SAFE) with Clean Metals Recycling N.A. Inc. ("Clean Metals") for a principal investment amount of US$4.17 million. The SAFE will convert into equity upon the completion of Clean Metals' next financing round.

Clean Metals is a Canadian-based environmental services and critical materials company focused on the recovery of metals from hazardous waste streams, end-of-life vehicles, and industrial by-products. The company is actively executing a national roll-up strategy targeting the acquisition of high-margin, cash flow-positive environmental services businesses across the United States.

"This investment reflects Skycap's strategy of backing high-growth companies with a strong environmental and commercial mandate," said Brad Morris, CEO of Skycap. "Clean Metals is well positioned to become a market leader in hazardous waste recovery and critical materials recycling, and we are excited to support their expansion."

Skycap's investment in Clean Metals reflects the company's confidence in the long-term upside of consolidation strategies within environmental services recycling. Clean Metals is targeting high-margin, cash-flowing businesses in overlooked segments of the market - areas often bypassed by larger incumbents. This strategic focus positions the company to rapidly build scale and drive operational efficiencies. In parallel, Skycap remains committed to delivering shareholder liquidity outcomes and intends to deploy future capital into sectors with strong fundamentals and a clear path to timely liquidity events, ensuring that the Company's portfolio is aligned with both market opportunities and value realization for investors.

Skycap looks forward to sharing additional updates as it advances both its long-term and near-term investment strategies. With active capital deployment plans underway and a pipeline of opportunities under review, the Company remains focused on delivering meaningful, timely value for shareholders across evolving market conditions.

About Clean Metals Recycling N.A. Inc.

Clean Metals is a pioneering force in the integrated metal recycling industry, dedicated to revolutionizing the management of difficult-to-process waste across North America. The company's mission is to transform industrial waste into valuable metal byproducts through advanced environmental services, while upholding the highest standards of sustainability and safety.

Clean Metals leverages a combination of traditional and advanced recycling techniques, employing state-of-the-art technologies to process complex waste streams and produce high-quality domestic metal units that support local industries. The company combines recovered metal byproducts with conventional metal scrap to enhance value and circularity in the materials economy.

To drive its growth, Clean Metals employs a disciplined roll-up strategy focused on acquiring cash flow-positive businesses that enhance operational capacity and geographic reach. By consolidating complementary operations, Clean Metals is broadening its service offerings, improving efficiency, and accelerating innovation across its platform. Sustainability is at the core of its strategy, with all operations designed to minimize waste, reduce emissions, and conserve natural resources.

More information about the company can be found at www.cleanmetals.com.

About Skycap Investment Holdings Inc.

Skycap is a Canadian-based investment issuer focused on identifying and investing in high-growth sectors. Leveraging its financial resources and market expertise, Skycap aims to deliver sustainable value to its stakeholders through strategic and diversified investments. Additional information can be found in the Company's filing statement dated March 27, 2025, available under the Company's profile on SEDAR+ at www.sedarplus.ca.

Forward-Looking Information

This news release contains "forward-looking information" within the meaning of applicable securities laws, including statements relating to the Company's strategic plans and future operations. Forward-looking statements are identified by words such as "expects," "anticipates," "believes," "projects," "plans," and similar expressions. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Although management believes the assumptions underlying these statements are reasonable, there can be no assurance such statements will prove to be accurate. The Company undertakes no obligation to update any forward-looking information except as required by applicable law.

Contact:

Investor Relations
Skycap Investment Holdings Inc.
ir@li-metal.com
289-307-0117

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/251611

FAQ

What is the value of Skycap Investment Holdings' (LIMFF) SAFE investment in Clean Metals?

Skycap Investment Holdings invested US$4.17 million in Clean Metals through a Simple Agreement for Future Equity (SAFE).

What is Clean Metals Recycling's business focus?

Clean Metals is a Canadian environmental services company that recovers metals from hazardous waste streams, end-of-life vehicles, and industrial by-products.

When will Skycap's SAFE investment convert to equity in Clean Metals?

The SAFE investment will convert into equity upon the completion of Clean Metals' next financing round.

What is Clean Metals' expansion strategy in the United States?

Clean Metals is executing a national roll-up strategy targeting the acquisition of high-margin, cash flow-positive environmental services businesses across the United States.