NIO:CC - Nio Strategic Metals Announces the Extension of its $500000 Loan Agreement
(TheNewswire)
Montreal, Quebec – TheNewswire - April 26, 2024 –Nio Strategic Metals Inc. (TSXV:NIO) (OTC:NIOCF) (“ Nio ” or the“ Company ”) announces that it has amended its $500,000 unsecuredloan agreement with Nio-Metals Holdings LLC (“Nio-Metals”) datedMarch 17, 2021 (the “Amended Loan Agreement”) to extend thematurity date to April 30, 2025, subject to no other condition.Following the cash reimbursement of $50,000, the Amended LoanAgreement has been reduced to $450,000. Except for the maturity dateand the principal amount, the other material terms and conditions ofthe Amended Loan Agreement have remained the same.
Related Party Disclosure
Pursuant to Multilateral Instrument 61-101 -- Protection of MinoritySecurity Holders in Special Transactions ("MI 61-101"), the Amended Loan Agreement constitutes a"related party transaction" as Nio-Metals (the “RelatedParty”) currently holds 45.9% of the issued and outstanding commonshares of the Company.
The Company has relied on the exemptions from thevaluation and minority shareholder approval requirements of MI 61-101contained in sections 5.5(a) and 5.7(1)(f) of MI 61-101 on the basisthat the transactions did not exceed 25% of the fair market value ofthe Company’s market capitalization and the Loans are on reasonablecommercial terms that are not less advantageous to the Company than ifthe Loans were obtained from a person dealing at arm’s length withthe Company.
Moreover, the Related Party, to the extent that itholds Nio common shares and that its Amended Loan Agreement is notconvertible, will experience the same effects as other Nioshareholders as a result of the Amended Loan Agreement.
The Company did not file a material change report morethan 21 days before entering into the Amended Loan Agreement as theterms of the Amended Loan Agreement were not settled until shortlyprior to execution and the Company and the parties wished to close theAmended Loan Agreement on an expedited basis for sound businessreasons.
About Nio Strategic Metals
Nio Strategic Metals is an exploration and developmentcompany, with a focus on becoming a ferroniobium producer. The Companyholds a niobium property in Oka, Québec and other explorationproperties in the Province of Québec.
For more information on the Company, please refer to the Company’s public documents available on SEDAR ( www.sedarplus.ca ) or on theCompany’s website ( https://niostratmet.com/ ).
For more information, please contact:
Hubert Marleau
Chairman, President and Chief Executive Officer
nio.investorinformation@gmail.com
514-560- 7623
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Cautionary Statement on Forward-Looking Information
This news release containsforward-looking statements and forward-looking information (together,“forward looking statements”) within the meaning of applicable Canadian securities laws. Statements, other than statements of historical facts, may be forward-looking statements.Generally, forward-looking statements can be identified by the use ofterminology such as “plans”, “expects”, “estimates”,“intends”, “anticipates”, “believes” or variations of suchwords, or statements that certain actions, events or results “may”, “could”, “would”, “might”, “will be taken”, “occur” or “be achieved”, the negative of these terms and similar terminologyalthough not all forward-looking statement contains these terms andphrases. Forward-looking statements involve risks, uncertainties andother factors that could cause actual results, performance, prospectsand opportunities todiffer materially fromthose expressed or implied bysuch forward-looking statements. These risks and uncertaintiesinclude, but are not limited to, the risk factors set out in NioStrategic Metals’ annual and/or quarterly management discussion andanalysis and in other of its public disclosure documents filed onSEDAR at www.sedar.com, as well as all assumptions regarding the foregoing. Although NioStrategic Metals believes that the assumptions and factors used in preparing the forward-lookingstatements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events willoccur in the disclosed time frame or at all. Except where required by applicable law, Nio Strategic Metals disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
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