Scandium Canada Ltd.: A $750,000 Convertible Debenture Financing Announcement
On March 5, 2025, Scandium Canada Ltd. (TSX-V: SCD, OTC: SCDCF), a leading scandium producer, announced its intention to raise up to $750,000 through a non-brokered private placement of unsecured convertible debentures. This financing comes as part of the Corporation’s strategy to strengthen its financial position and accelerate its growth plan.
Details of the Financing
Under the terms of the proposed financing, the Corporation plans to issue up to 75 debentures, each with a nominal value of $10,000. These debentures will bear interest at a rate of 10.00%, calculated semi-annually, and will be due 12 months from the closing date of the offering. The interests on the debentures will start accruing on the closing date and will be payable semi-annually in cash or in common shares of the Corporation, at the holders’ option.
Convertible Debenture Features
The principal amount of the debentures will be convertible into common shares of the Corporation at a price of $0.02 per share. This conversion feature offers investors the potential for increased returns if the Corporation’s share price rises above the conversion price.
Impact on Scandium Canada Ltd.
The proceeds from this financing will provide Scandium Canada Ltd. with additional financial resources to execute its growth strategy. This may include expanding production capacity, investing in research and development, and pursuing strategic acquisitions. The Corporation’s management team believes that this financing represents a significant step towards achieving its long-term objectives.
Impact on Investors
Investors participating in this financing will benefit from a fixed 10.00% interest rate, which is relatively high compared to current market conditions. Additionally, the convertible debenture structure offers investors the potential for capital appreciation if the Corporation’s share price rises above the conversion price. However, investors should be aware of the risks associated with investing in early-stage companies and should carefully consider their investment objectives and risk tolerance before participating in the offering.
Impact on the World
Scandium Canada Ltd.’s financing announcement is a positive sign for the global scandium market, which has seen increasing demand due to its lightweight and high-strength properties. The additional production capacity and research and development investments enabled by this financing could contribute to the continued growth of the scandium industry. Furthermore, the success of Scandium Canada Ltd.’s financing may encourage other companies in the sector to pursue similar financing opportunities.
Conclusion
Scandium Canada Ltd.’s announcement of a non-brokered private placement of unsecured convertible debentures represents an important step in the Corporation’s growth strategy. This financing offers investors an attractive fixed interest rate and the potential for capital appreciation through conversion into common shares. The proceeds from this financing will be used to strengthen the Corporation’s financial position and accelerate its growth plan. The positive market reaction to this financing announcement is a promising sign for the global scandium industry.
- Scandium Canada Ltd. announces $750,000 convertible debenture financing
- Proceeds to be used for growth strategy and financial strengthening
- Interest rate of 10.00% and potential for capital appreciation through conversion
- Positive sign for the global scandium industry
