Defense Metals Corp. Announces Issue of Common Shares to Satisfy Interest Payment on Convertible Notes
Vancouver, BC, April 14, 2025 – Defense Metals Corp. (TSXV: DEFN, OTCQB: DFMTF, FSE: 35D), a mineral exploration company focused on the acquisition of mineral properties containing metals and minerals utilized in the electric power industry, has announced that it will issue 640,097 common shares of the Company (the “Interest Shares”) to certain holders of secured convertible notes (the “Notes”) in full satisfaction of the interest payable thereunder as of April 11, 2025, in the aggregate amount of C$98,632.55.
Impact on Defense Metals
This interest payment represents a significant financial obligation for Defense Metals. By issuing the Interest Shares, the Company is able to satisfy this debt without having to pay out a large sum of cash. This approach not only preserves the Company’s cash reserves but also dilutes the ownership of existing shareholders. The total number of issued and outstanding common shares of the Company will increase by approximately 3.4% as a result of this issuance.
Impact on Shareholders
Existing shareholders will experience a dilution of their ownership stake in Defense Metals. The issuance of new shares reduces the percentage of ownership held by each existing shareholder, leading to a decrease in their influence over company decisions. However, the Company’s ability to satisfy this debt obligation through the issuance of shares instead of cash may be viewed positively by some investors, as it allows Defense Metals to maintain its financial resources for continued exploration and development activities.
Impact on the World
The impact of Defense Metals’ interest payment on the world at large is minimal. This event primarily affects the Company and its shareholders. Defense Metals’ focus on the acquisition of mineral properties containing metals and minerals utilized in the electric power industry is an essential contribution to the global transition towards renewable energy sources. As the world moves towards a more sustainable energy future, companies like Defense Metals play a crucial role in ensuring a steady supply of the necessary materials.
Conclusion
Defense Metals Corp.’s announcement of the issuance of 640,097 common shares to satisfy an interest payment on convertible notes has both positive and negative implications for the Company and its shareholders. While this approach allows Defense Metals to maintain its financial resources and avoid a significant cash outlay, it also results in a dilution of ownership for existing shareholders. Ultimately, the Company’s commitment to the acquisition of mineral properties containing metals and minerals utilized in the electric power industry remains an essential contribution to the global transition towards renewable energy sources.
- Defense Metals Corp. announces issuance of Interest Shares to satisfy interest payment on convertible notes
- Impact on Defense Metals: Preserves cash reserves, dilutes ownership
- Impact on Shareholders: Decrease in ownership influence
- Impact on the World: Minimal, focus on renewable energy sources essential
