BacTech Strengthens Balance Sheet Through Convertible Debenture Restructuring, Reducing Outstanding Debt

Executive Summary

• BacTech Environmental Corp. announced a restructuring of its existing convertible debenture, converting $950,000 of principal into 19 million common shares and issuing 19 million three‑year share purchase warrants at $0.15 per share.
• The remaining $850,000 of debt will be forgiven in exchange for a 1% royalty on the Company’s projects, reducing overall indebtedness by approximately $1.8 million.
• The transaction is intended to strengthen the balance sheet and position BacTech for a forthcoming capital raise to launch its Ecuador bioleach facility and advance Zero‑Tailings initiatives.

Key Details

• Original Agreement (Mar 2025): Targeted elimination of ~US$1.8 million convertible debt via a two‑tier conversion structure.
• Revised Conversion:
• $950,000 principal converted into 19,000,000 common shares of BacTech.
• Debenture holder receives 19,000,000 three‑year common share purchase warrants, exercisable at US$0.15 per share.
• Debt Forgiveness: Remaining $850,000 of the debenture is forgiven; in return, the holder will receive a 1% royalty on all BacTech projects.
• Strategic Rationale: Simplifies capital structure, reduces dilution relative to the original plan, and provides additional stakeholder confidence ahead of a planned equity raise for the Ecuador bioleach plant.
• CEO Quote: Ross Orr emphasized that the restructuring “reinforces the Company’s financial foundation and advancing the Ecuador bioleach facility as efficiently as possible.”

Notable Quotes

“This restructuring reflects the continued confidence of a long‑standing investor in BacTech’s technology and near‑term growth prospects,” – Ross Orr, President & CEO.