Gleason & Sons Closes on Scalable Loan Facility to Fund Electric Royalties’ New Acquisitions

CHARLOTTE, NC / ACCESSWIRE / January 25, 2023 / Gleason & Sons LLC announced today it has closed on a C$2 million loan (the "Loan Facility") to Electric Royalties Ltd. (TSXV:ELEC) (OTCQB:ELECF) ("Electric Royalties") for purposes of funding new acquisitions of producing royalties.

At closing, Electric Royalties advanced C$1 million earmarked to fulfill the cash portion of the purchase price on a 0.75% gross revenue royalty connected with the Penouta tin-tantalum mine operated by Strategic Minerals Europe Corp. (NEO:SNTA) (FRA:26K0) (OTCQB:SNTAF) in Spain.

The Gleason & Sons Loan Facility provides Electric Royalties with a scalable, non-dilutive source of financing to add to its existing portfolio of royalty assets across nine critical metals used in the electrification of the global economy. Gleason & Sons is the family office of Stefan Gleason, a Charlotte-based entrepreneur who owns and leads several privately held businesses in the United States, including Money Metals Exchange LLC. Money Metals is one of the largest precious metals dealers and depositories in North America with over C$1 billion in annual revenues.

Gleason and his affiliates are also major shareholders in Electric Royalties with a 17.5% ownership stake, in aggregate.

"We are pleased to support Electric Royalties by providing this flexible Loan Facility as the company continues to acquire royalties on attractive battery metal projects in North America and other favorable jurisdictions," said Gleason, managing director of Gleason & Sons.

"Electric Royalties now owns two producing royalties with two additional royalties expected to enter production during 2023, taking the company into positive cash flow. The company has also established a deal pipeline of accretive new royalty acquisition opportunities, with ample funding being the only apparent need," Gleason continued.

"The limit on our $2 million Loan Facility can be increased substantially if requested, giving management a significant tool to finance new deals without dilution. This may be especially useful when the valuation of Electric Royalties shares on the public markets, according to independent analysis by Fundamental Research Corp., is dramatically below fair value at present."

The Loan Facility matures 36 months after the initial loan advance, carries a 15% annualized interest rate, and includes no origination or non-utilization fees. Electric Royalties is permitted to defer all interest payments until the maturity date.

The Loan Facility is provided on a non-exclusive basis, affording Electric Royalties flexibility to establish other debt or equity financing partnerships on any terms it deems favorable. Gleason & Sons has significant additional lending capacity beyond the initial C$2 million borrowing limit if requested by Electric Royalties.

Loan advances plus accrued interest are convertible into common shares of Electric Royalties at: (a) for the Loan at the greater of C$0.50, a 100% premium above the 30-day VWAP of Company's shares on the TSX Venture Exchange (the "TSXV") at the advance, or the minimum price acceptable to the TSXV, per share; and (b) for Interest at the Market Price (as defined under Exchange policy 1.1) at the time of settlement, subject to the Market Price not being less than the Conversion Price without prior Exchange approval, per share.

Conversions are at the option of Gleason & Sons at any time following 6 months from the initial advance, but conversions are restricted such that Gleason & Sons, Stefan Gleason, and their affiliates would not gain more than 19.99% in control or direction of Borrower's issued and outstanding Shares on an as converted and partially diluted basis.

For further information, contact:
Stefan Gleason
Gleason & Sons LLC
15720 Brixham Hill Avenue, #205
Charlotte, NC 28277
Tel: 208-577-2230
Email: Stefan_Gleason@yahoo.com

This release includes certain statements that may be deemed "forward-looking statements." All statements in this release, other than statements of historical facts, that address anticipated future events are forward-looking statements. Although the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not
guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements.

SOURCE: Gleason & Sons LLC