Ucore Rare Metals Completes $1.1 Million Convertible Debenture Conversion
TL;DR
Ucore's automatic debt conversion eliminates $1.1M in liabilities, strengthening its balance sheet for rare earth supply chain expansion against competitors.
Ucore triggered a conversion clause after shares traded at $2.20+ for 20 days, issuing 1.22M shares and 611K warrants at $0.90 per unit.
Ucore's financial progress supports North American rare earth independence, reducing reliance on foreign supplies for sustainable technology and energy solutions.
Ucore's share price surge automatically converted $1.1M in debentures to equity, showcasing market confidence in rare earth innovation.
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Ucore Rare Metals Inc. (TSXV: UCU) (OTCQX: UURAF) has completed the automatic conversion of its final $1.1 million in convertible debentures originally issued in May 2020. The conversion was triggered when the company's shares closed at $2.20 or higher on the TSX Venture Exchange for 20 consecutive trading days, reaching this threshold on September 2, 2025. This financial milestone resulted in the issuance of 1,222,219 common shares and 611,108 warrants, with no debentures remaining outstanding.
The original debentures were issued as 2,800 units at $1,000 each with 7.5% annual interest, later amended in 2024 to mature on January 31, 2026, with a conversion price of $0.90 per unit. Certain debentures were held by related parties, including Chairman and CEO Pat Ryan, though the transaction is exempt from MI 61-101 minority approval requirements. The conversion did not create any new insiders or control persons within the company structure.
This development is significant for Ucore's strategic positioning in the rare earth element market, particularly as the company focuses on disrupting China's control of the North American REE supply chain. The conversion strengthens Ucore's balance sheet by eliminating debt obligations and potentially reducing interest expenses, providing additional financial flexibility for ongoing projects. Investors can access the latest news and updates relating to UURAF in the company's newsroom at https://ibn.fm/UURAF.
The financial restructuring supports Ucore's broader vision of becoming a leading advanced technology company providing metal separation products and services to the mining and mineral extraction industry. The company's strategic plan includes developing a heavy and light rare-earth processing facility in Louisiana, subsequent strategic metal complexes in Canada and Alaska, and the longer-term development of the Bokan-Dotson Ridge Rare Heavy REE Project in Southeast Alaska. This conversion event demonstrates market confidence in Ucore's share performance and operational strategy during a critical period for North American rare earth element development.
The automatic conversion mechanism, tied to share price performance, reflects the company's successful navigation of market conditions and investor sentiment. By converting debt to equity during favorable market conditions, Ucore positions itself for continued growth in the competitive rare earth metals sector, where supply chain security and technological innovation remain paramount concerns for industrial and national security interests across North America.
Curated from InvestorBrandNetwork (IBN)
