Sherritt Provides Further Update on Activities in Cuba; Announces Non-Binding Term Sheet and Positive Engagement with Department of State

The most recent news, dated May 20, 2026, announces a non-binding term sheet with Gillon Capital, LLC for a private placement of common share purchase warrants. If fully exercised, Gillon would own 55% of Sherritt, effectively seizing control. This follows a chaotic week where the company reversed its plan to exit its Cuban joint venture and instead cited an evaluation of a "potential value preserving opportunity," likely this same deal. The collapse of Sherritt's operations and corporate governance was triggered by a May 1, 2026, U.S. Executive Order expanding sanctions on Cuba, which led to the suspension of Cuban JV activities, the mass resignation of directors and the auditor, and an anticipated cease-trade order for failing to file financials.

The non-binding term sheet with Gillon Capital is a desperate survival tactic, not a positive development. The sanction-induced crisis has already triggered a failure-to-file cease-trade order (FFCTO) expectation, a CFO and auditor resignation, and a halt to core operations in Cuba, where its refinery feedstock is running out. The promise of an undefined, discounted warrant deal that would cede a majority stake is the only apparent option to avoid insolvency. The term "non-binding" means it offers zero immediate relief. The announcement is a disclosure of a potential, deeply dilutive restructuring, not a concluded rescue.

Sherritt International is a Canadian resource company whose primary asset is a 50% stake in the Moa Joint Venture in Cuba, which mines and processes nickel and cobalt. The mixed sulphides are shipped to the company's wholly-owned Fort Saskatchewan refinery in Alberta, Canada, for final refining. The company also holds a 33% stake in Energas S.A., the largest independent energy producer in Cuba. The company's entire value proposition is inextricably linked to its operations and political risk in Cuba.