Ucore Rare Metals Completes $1.1 Million Debenture Conversion, Strengthening Financial Position for Rare Earth Projects
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. has completed the automatic conversion of its remaining $1.1 million in convertible debentures into equity, representing a significant milestone in the company's financial restructuring. The conversion was triggered after Ucore'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. Under the conversion terms, Ucore issued 1,222,219 common shares and 611,108 warrants, effectively eliminating all outstanding debenture obligations.
The original debentures were issued in May 2020 at $1,000 each with 7.5% annual interest, with terms later amended in 2024 to mature on January 31, 2026, and a conversion price of $0.90 per unit. This financial development is particularly significant given that 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 represents a strategic strengthening of Ucore's balance sheet as the company continues its focus on rare and critical metal resources, extraction, and separation technologies.
Ucore's vision includes disrupting China's control of the North American rare earth element supply chain through the development of processing facilities in strategic locations. The company's near-term plans include establishing a heavy and light rare-earth processing facility in Louisiana, with subsequent strategic metal complexes planned for Canada and Alaska. The completion of this debt conversion positions Ucore with enhanced financial flexibility as it advances its long-term development projects, including the Bokan-Dotson Ridge Rare Heavy REE Project on Prince of Wales Island in Southeast Alaska. Investors seeking additional information can access the latest news and updates relating to UURAF in the company's newsroom at https://ibn.fm/UURAF.
Curated from InvestorBrandNetwork (IBN)
