Clinch Resources Ltd. Announces Closing of Business Combination and Going Public Transaction

Executive Summary

• Clinch Resources Ltd. completed a reverse‑takeover of Arrow Resources Limited, resulting in the Company’s shares beginning TSX trading under “CLCH” on 20 Mar 2026.
• Concurrent private placement raised US$28.2 M (15,668,844 subscription receipts at US$1.80 each) and a convertible note financing secured US$17.82 M of notes (9.5% interest, 3‑year term, conversion price US$2.16).
• Management and board were replaced; Jon Nix becomes CEO and holds ~8.9% of post‑transaction common shares.

Key Details

• Transaction Structure – Amalgamation of Clinch (formerly 1290439 B.C. Ltd.) with Arrow Resources; all Arrow securities acquired via share exchange.
• Share Split & Post‑Closing Share Count – Forward split of 1.1811023622 new shares per old share, creating 1,500,000 pre‑closing shares; after the transaction, 355,317,909 common shares outstanding.
• TSX Listing – Common shares to commence trading on TSX in CAD under ticker “CLCH” on 20 Mar 2026.

Concurrent Financing (Brokered Private Placement)

• Issuer: 1406681 B.C. Ltd. (“Finco”)
• Units Sold: 15,668,844 subscription receipts
• Issue Price: US$1.80 per receipt
• Gross Proceeds: US$28,203,919
• Lead Manager: Canaccord Genuity Corp.; agents also included Odeon Capital Group and Jett Capital Advisors.
• Use of Proceeds: Development of the ARI metallurgical coal project; general & administrative expenses; working capital.

Convertible Note Offering

• Issuer: Finco (non‑brokered private placement)
• Principal Amount: US$17,821,645
• Interest Rate: 9.5% per annum
• Term: 3 years
• Conversion Price: US$2.16 per common share (post‑transaction)
• Fees Paid to Agents:
• Advisory cash fee – 1.5% of gross proceeds, satisfied by issuance of 50,000 Finco shares at US$1.80 each.
• Placement fee – 4.0% of gross proceeds (cash), plus an additional ~US$827,000 cash fee to a separate placement agent.

Management & Board Changes

• CEO: Jon Nix
• CFO/Corporate Secretary: Brett Young
• EVP, Investor Relations: Bobby Gaylor
• Board Composition: Marc Marzotto (Chair), Jon Nix, Brett Young, General Russel Honore, Belinda Labatte, Jeff Wilson, David Losito.

Early Warning Disclosure – Insider Holdings

• Jon Nix now beneficially owns 31,707,124 common shares (≈8.9% of post‑transaction outstanding shares) plus convertible securities representing an additional 9,292,000 potential shares.
• Outgoing Insiders L5 Capital Inc. and Jennifer Goldman saw ownership fall below the 10% reporting threshold due to dilution from the transaction.

Additional Disclosures

• Annual Information Form (AIF) for FY 2024 and related material change report filed on SEDAR+.
• Legal counsel: Cassels Brock & Blackwell LLP, Stubbs Alderton & Markiles LLP (Arrow); Garfinkle Biderman LLP (1290439 B.C. Ltd.); Borden Ladner Gervais LLP (Finco agents).

Notable Quotes

(No direct quotes were provided in the release.)