Canada Rare Earth Corp. Announces Financial Advisor and Notes Offering
Rhea-AI Impact
Rhea-AI Sentiment
Rhea-AI Summary
Canada Rare Earth Corp. (RAREF) has appointed SCP Resource Finance LP as its financial advisor and announced a notes offering to raise up to US$3 million. The notes will be issued at a 5% discount with a 15% annual coupon payable semi-annually and will mature in 24 months. Subscribers will receive up to 25 million bonus warrants, each convertible to one common share at C$0.05, expiring after 365 days. The notes are unsecured, non-convertible, and redeemable by the company. SCP will receive a 4% commission on gross proceeds. The funds will support general corporate working capital, with repayment planned through rare earth trading operations revenue or future financings.
Canada Rare Earth Corp. (RAREF) ha nominato SCP Resource Finance LP come consulente finanziario e ha annunciato un'offerta di note per raccogliere fino a 3 milioni di dollari USA. Le note saranno emesse con uno sconto del 5%, un cedola annuale del 15% pagabile semestralmente e scadranno dopo 24 mesi. Gli abbonati riceveranno fino a 25 milioni di warrant bonus, ciascuno convertibile in un'azione ordinaria a C$0,05, con scadenza dopo 365 giorni. Le note sono non garantite, non convertibili e rimborsabili dalla società. SCP riceverà una commissione del 4% sui proventi lordi. I fondi saranno destinati al capitale circolante generale aziendale, con il rimborso previsto tramite i ricavi delle operazioni di commercio di terre rare o finanziamenti futuri.
Canada Rare Earth Corp. (RAREF) ha designado a SCP Resource Finance LP como su asesor financiero y ha anunciado una oferta de notas para recaudar hasta 3 millones de dólares estadounidenses. Las notas se emitirán con un descuento del 5%, un cupón anual del 15% pagadero semestralmente y vencerán en 24 meses. Los suscriptores recibirán hasta 25 millones de warrants de bonificación, cada uno convertible en una acción común a C$0.05, con vencimiento después de 365 días. Las notas son no garantizadas, no convertibles y rescatables por la compañía. SCP recibirá una comisión del 4% sobre los ingresos brutos. Los fondos apoyarán el capital de trabajo corporativo general, con el reembolso planeado a través de los ingresos de operaciones de comercio de tierras raras o financiamientos futuros.
Canada Rare Earth Corp. (RAREF)는 SCP Resource Finance LP를 금융 자문사로 임명하고 최대 미화 300만 달러를 조달하기 위한 채권 발행을 발표했습니다. 이 채권은 5% 할인으로 발행되며, 연 15% 쿠폰이 반기별로 지급되고 만기는 24개월입니다. 구독자들은 최대 2,500만 개의 보너스 워런트를 받게 되며, 각 워런트는 C$0.05에 일반 주식 1주로 전환 가능하며 365일 후 만료됩니다. 이 채권은 무담보, 비전환, 회사가 상환할 수 있습니다. SCP는 총 수익의 4% 수수료를 받습니다. 자금은 일반 기업 운영 자본을 지원하며, 상환은 희토류 거래 수익 또는 미래 자금 조달을 통해 계획됩니다.
Canada Rare Earth Corp. (RAREF) a nommé SCP Resource Finance LP comme conseiller financier et a annoncé une émission d'obligations visant à lever jusqu'à 3 millions de dollars US. Les obligations seront émises avec une remise de 5%, un coupon annuel de 15% payable semestriellement et arriveront à échéance dans 24 mois. Les souscripteurs recevront jusqu'à 25 millions de bons de souscription, chacun convertible en une action ordinaire à C$0,05, expirant après 365 jours. Les obligations sont non garanties, non convertibles et remboursables par la société. SCP percevra une commission de 4% sur le produit brut. Les fonds serviront à soutenir le fonds de roulement général de l'entreprise, le remboursement étant prévu grâce aux revenus des opérations de négoce de terres rares ou à des financements futurs.
Canada Rare Earth Corp. (RAREF) hat SCP Resource Finance LP als Finanzberater ernannt und eine Anleiheemission angekündigt, um bis zu 3 Millionen US-Dollar zu beschaffen. Die Anleihen werden mit einem 5%igen Abschlag ausgegeben, haben einen jährlichen Kupon von 15%, der halbjährlich bezahlt wird, und eine Laufzeit von 24 Monaten. Zeichner erhalten bis zu 25 Millionen Bonus-Warrants, die jeweils in eine Stammaktie zu C$0,05 umwandelbar sind und nach 365 Tagen verfallen. Die Anleihen sind ungesichert, nicht wandelbar und vom Unternehmen rückzahlbar. SCP erhält eine 4% Provision auf den Bruttoerlös. Die Mittel dienen der allgemeinen Betriebskapitalfinanzierung, die Rückzahlung ist durch Erlöse aus dem Handel mit Seltenen Erden oder zukünftige Finanzierungen geplant.
Positive
- Secured up to US$3 million in potential funding through notes offering
- Notes offering provides immediate working capital for operations
- Bonus warrants at C$0.05 provide potential upside for investors
- Company maintains flexibility with redemption options
Negative
- High interest rate of 15% per annum indicates expensive financing
- 5% discount on notes face value adds to financing cost
- Potential dilution from 25 million bonus warrants
- Unsecured notes may indicate limited assets or higher risk
Vancouver, British Columbia--(Newsfile Corp. - May 8, 2025) - Canada Rare Earth Corp. (TSXV: LL) ("CREC" or the "Company") is pleased to announce that it has appointed SCP Resource Finance LP ("SCP") as its financial advisor.
The Company is also pleased to announce that it has engaged with SCP to lead an offering of notes (the "Notes") for gross proceeds of up to US
- Notes will be issued at a discount of
5.0% of the face amount and will mature 24 months after issuance ("Maturity"). - Notes will pay a coupon of
15.0% per annum, payable semi-annually, beginning 6 months after issue. - Notes are unsecured.
- Notes are not convertible into securities of the Company.
- Notes are redeemable by the Company at any time after issuance. A minimum of one year of interest payments will be payable to noteholders on any redemption prior to Maturity.
- Subscribers to the Notes will, subject to TSX Venture Exchange approval, receive a total of up to 25 million bonus warrants, allocated on a pro-rata basis (each, a "Warrant"). Each Warrant will entitle the holder to acquire one common share at a price of C
$0.05 and will expire 365 days after issuance if not exercised. The Warrants are non-transferrable. - The net proceeds of the offering will be used by the Company for general and corporate working capital purposes.
- The Company will service and repay the Notes from revenue generated by its rare earth concentrates and oxides sourcing and trading operations, and/or future financings.
- SCP will be paid a commission of
4% of gross proceeds, in cash. - All Notes subscribers will be arm's length parties to the Company.
Regarding the Transaction announced by the Company on January 7, 2025, Canada Rare Earth continues to engage in discussions regarding funding and off-take agreements. The Company expects to provide further details on the transaction in due course.
About Canada Rare Earth Corp.
Canada Rare Earth operates a rapidly expanding global essential minerals business, built on over a decade of success in the rare earth minerals and products sector. Our strategy focuses on leveraging near-term positive cash flow opportunities to support our growth. This includes acquiring and developing proprietary projects, resources, and processing facilities.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Forward-looking statements in this release are made pursuant to the 'safe harbour' provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties.
For more information, interested parties can review the Company's filings available at www.sedarplus.ca.
FOR FURTHER INFORMATION, PLEASE CONTACT:
| Peter Shearing Chief Executive Officer pshearing@canadarareearth.com | Don Anderson Chief Investment Officer danderson@canadarareearth.com |
| Telephone: (604) 638-8886 Website: www.canadarareearth.com | |
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/251393
FAQ
What are the key terms of RAREF's US$3 million notes offering?
The notes have a 15% annual coupon paid semi-annually, 5% discount at issuance, 24-month maturity, and come with bonus warrants. They are unsecured, non-convertible, and redeemable by the company.
How many bonus warrants will RAREF issue with the notes offering?
Up to 25 million bonus warrants will be issued, with each warrant convertible to one common share at C$0.05 and expiring after 365 days.
What will Canada Rare Earth Corp use the notes offering proceeds for?
The proceeds will be used for general and corporate working capital purposes, with repayment planned through rare earth trading operations revenue or future financings.
What is the commission structure for SCP Resource Finance LP in RAREF's notes offering?
SCP will receive a 4% commission on gross proceeds in cash.
What is the status of RAREF's January 7, 2025 Transaction?
The company continues to engage in discussions regarding funding and off-take agreements, with further details expected to be provided in due course.
Canada Rare