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Royal Helium (TSXV: RHC) (OTCQB: RHCCF) has announced the cancellation of its previously announced private placement offering of debenture units from December 2, 2024. On January 20, 2025, the company filed a notice of intention under the Bankruptcy and Insolvency Act (BIA) after failing to secure an out-of-court restructuring solution.
The company’s directors determined that filing for BIA protection was the best course of action for the company and its stakeholders after reviewing all financing options. Existing debentureholders of both 14% convertible debentures (due December 31, 2025) and 12% convertible debentures (due June 30, 2025) will retain their holdings under existing terms, with all previous tender consents becoming void.
Additionally, board member Karl Kurz has resigned with immediate effect.
Royal Helium (TSXV: RHC) (OTCQB: RHCCF) ha annunciato la cancellazione della sua precedente offerta di collocamento privato di unità di obbligazioni, fissata per il 2 dicembre 2024. Il 20 gennaio 2025, la società ha presentato un avviso di intenzione ai sensi della Legge sulla bancarotta e l’insolvenza (BIA) dopo non essere riuscita a ottenere una soluzione di ristrutturazione extragiudiziale.
I direttori dell’azienda hanno stabilito che presentare domanda di protezione BIA era la miglior azione possibile per la società e i suoi stakeholder, dopo aver esaminato tutte le opzioni di finanziamento. I detentori esistenti di obbligazioni convertibili al 14% (in scadenza il 31 dicembre 2025) e al 12% (in scadenza il 30 giugno 2025) manterranno le loro partecipazioni alle condizioni esistenti, con tutte le precedenti autorizzazioni a tender che diventano nulle.
Inoltre, il membro del consiglio Karl Kurz si è dimesso con effetto immediato.
Royal Helium (TSXV: RHC) (OTCQB: RHCCF) ha anunciado la cancelación de su oferta de colocación privada de unidades de deuda previamente anunciada para el 2 de diciembre de 2024. El 20 de enero de 2025, la empresa presentó un aviso de intención bajo la Ley de Quiebras e Insolvencia (BIA) después de no haber logrado asegurar una solución de reestructuración fuera de los tribunales.
Los directores de la compañía determinaron que presentar una solicitud de protección bajo la BIA era el mejor curso de acción para la empresa y sus interesados, tras revisar todas las opciones de financiamiento. Los tenedores existentes de bonos convertibles al 14% (con vencimiento el 31 de diciembre de 2025) y al 12% (con vencimiento el 30 de junio de 2025) mantendrán sus participaciones bajo los términos existentes, con todas las anteriores autorizaciones de oferta resultando inválidas.
Además, el miembro de la junta Karl Kurz ha renunciado con efecto inmediato.
로열 헬륨 (TSXV: RHC) (OTCQB: RHCCF)는 2024년 12월 2일로 예정된 이전의 사모채권 발행을 취소한다고 발표했습니다. 2025년 1월 20일, 회사는 법원 밖에서의 구조조정 솔루션을 확보하지 못한 후 파산 및 파산법(BIA)에 따라 의도서 통지를 제출했습니다.
회사의 이사들은 모든 자금 조달 옵션을 검토한 후 BIA 보호를 신청하는 것이 회사와 이해관계자들을 위한 최선의 행동 방침이라고 판단했습니다. 기존 14% 전환사채(2025년 12월 31일 만기) 및 12% 전환사채(2025년 6월 30일 만기) 보유자는 기존 조건에 따라 보유를 유지하게 되며, 이전의 모든 입찰 동의는 무효가 됩니다.
추가로, 이사인 칼 쿠르츠가 즉시 사임했습니다.
Royal Helium (TSXV: RHC) (OTCQB: RHCCF) a annoncé l’annulation de son offre de placement privé d’unités de débentures précédemment annoncée pour le 2 décembre 2024. Le 20 janvier 2025, la société a déposé un avis d’intention en vertu de la Loi sur la faillite et l’insolvabilité (BIA) après avoir échoué à obtenir une solution de restructuration hors tribunaux.
Les administrateurs de l’entreprise ont déterminé que le dépôt d’une demande de protection BIA était la meilleure démarche pour l’entreprise et ses parties prenantes après un examen de toutes les options de financement. Les détenteurs actuels de débentures convertibles à 14% (échéance le 31 décembre 2025) et de débentures convertibles à 12% (échéance le 30 juin 2025) conserveront leurs avoirs selon les conditions existantes, toutes les précédentes consentements d’offres devenant nuls.
De plus, le membre du conseil Karl Kurz a démissionné avec effet immédiat.
Royal Helium (TSXV: RHC) (OTCQB: RHCCF) hat die Stornierung ihres zuvor angekündigten privaten Platzierungsangebots für Schuldverschreibungsanteile zum 2. Dezember 2024 bekannt gegeben. Am 20. Januar 2025 hat das Unternehmen eine Absichtserklärung gemäß dem Insolvenz- und Konkursgesetz (BIA) eingereicht, nachdem es nicht gelungen war, eine außergerichtliche Restrukturierungslösung zu sichern.
Die Direktoren des Unternehmens kamen zu dem Schluss, dass die Beantragung von BIA-Schutz der beste Weg für das Unternehmen und seine Stakeholder war, nachdem alle Finanzierungsoptionen geprüft worden waren. Bestehende Inhaber von 14% wandelbaren Schuldverschreibungen (fällig am 31. Dezember 2025) und 12% wandelbaren Schuldverschreibungen (fällig am 30. Juni 2025) werden ihre Anteile zu den bestehenden Bedingungen behalten, wobei alle vorherigen Zustimmungen zu Tenderangeboten ungültig werden.
Zusätzlich hat das Vorstandsmitglied Karl Kurz mit sofortiger Wirkung seinen Rücktritt erklärt.
Negative
- Company filed for bankruptcy protection under BIA
- Failed to secure out-of-court restructuring solution
- Cancellation of planned private placement offering
- Board member Karl Kurz resigned
- Company carries significant debt with 14% and 12% convertible debentures
Toronto, Ontario–(Newsfile Corp. – January 24, 2025) – Royal Helium Ltd. (TSXV: RHC) (OTCQB: RHCCF) (“Royal”) announces today that Royal and its subsidiaries, Royal Helium Exploration Limited and Imperial Helium Corp. (together with Royal, the “Company“), have cancelled the previously announced proposed private placement offering of debenture units of the Company previously announced on December 2, 2024 (the “Private Placement“).
On January 20, 2025, the Company announced its notice of intention to make a proposal under the Bankruptcy and Insolvency Act (the “BIA“). The Company had previously been pursuing an out-of-court restructuring solution. However, following review of all financing options and careful consideration of all available alternatives, and consultation with legal and financial advisors, the directors of the Company determined that it was in the best interests of the Company and its stakeholders to file for protection under the BIA and to cancel the previously announced proposed Private Placement offering.
All tenders delivered by holders of existing Company debentures (the “Existing Debentureholders“, being the 14% convertible debentures due December 31, 2025 and the 12% convertible debentures due June 30, 2025, and collectively referred to herein as the “Existing Debentures“) who opted to partake in the optional forfeiture of their Existing Debentures in exchange for the issuance of the new debenture units upon closing of the Private Placement equal to the then-outstanding principal amount of such Existing Debentureholder’s forfeited Existing Debentures shall continue to hold their Existing Debentures in accordance with their existing terms and all tendered consent forms shall be null and void.
The Company also announces that it has accepted Karl Kurz’s resignation from the board with immediate effect. The Company’s CEO commented “We are incredibly grateful for the contributions Karl made during his tenure on our board. Karl is undoubtedly one of the most accomplished professionals in the resource space, and it has been a privilege to have someone of his caliber involved with the Company. We wish him nothing but success in his future endeavors.”
About Royal Helium Ltd.
Royal is an exploration, production and infrastructure company with a primary focus on the development of helium and associated gases. The Company’s extensive footprint includes prospective helium permits and leases across Southern Saskatchewan and southeastern Alberta.
Royal’s helium reservoirs are carried primarily with nitrogen. Nitrogen is not considered a greenhouse gas (GHG) and therefore has a low GHG footprint when compared to other jurisdictions that rely on large scale natural gas production for helium extraction. Helium extracted from wells in Saskatchewan and Alberta can be up to 90% less carbon intensive than helium extraction processes in other jurisdictions. For more information, please visit SEDAR+ (www.sedarplus.ca) and the Company’s website (https://royalheliumltd.com).
Forward-Looking Statements
This news release includes certain statements that may be deemed to be “forward-looking statements”. All statements in this news release, other than statements of historical facts, that address events or developments that management of the Company expects, are forward-looking statements, including, the statements relating to the Company’s continued listing on the TSXV, and other statements that are not historical facts. Although management believes 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. The Company undertakes no obligation to update these forward-looking statements if management’s beliefs, estimates or opinions, or other factors, should change. Factors that could cause actual results to differ materially from those in forward-looking statements, include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see the public filings of the Company at www.sedarplus.com for further information on the risks and uncertainties associated with the Company’s business. Readers should not place undue reliance on forward-looking information and statements, which speak only as of the date made. The forward-looking information and statements contained in this release represent our expectations as of the date of this release. The Company disclaims any intention or obligation or undertaking to update or revise any forward-looking information or statements whether as a result of new information, future events or otherwise, except as required under applicable securities laws.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) 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/238336
FAQ
Why did Royal Helium (RHCCF) file for bankruptcy protection in January 2025?
Royal Helium filed for bankruptcy protection under the BIA on January 20, 2025, after failing to secure an out-of-court restructuring solution and determining it was the best course of action for the company and stakeholders after reviewing all financing options.
What happens to Royal Helium’s (RHCCF) existing debenture holders after the private placement cancellation?
Existing debentureholders of both 14% and 12% convertible debentures will continue to hold their debentures under existing terms, with all previous tender consents becoming null and void.
When were Royal Helium’s (RHCCF) convertible debentures originally due?
Royal Helium had two sets of convertible debentures: 14% convertible debentures due December 31, 2025, and 12% convertible debentures due June 30, 2025.
What was the private placement that Royal Helium (RHCCF) cancelled in January 2025?
Royal Helium cancelled a proposed private placement offering of debenture units that was previously announced on December 2, 2024, due to the company’s decision to file for bankruptcy protection.
