Ascot Announces Launch of C$0.01 Rights Offering

Executive Summary

• Ascot Resources Ltd. announced a rights offering to raise up to C$14.87 million, pricing each Rights Share at C$0.01.
• The offering includes a standby purchaser agreement with Fiore Management and Advisory Corp., which will purchase any unsubscribed rights.
• Proceeds are intended to settle outstanding creditor obligations; the company also plans a 50:1 share consolidation and a subsequent brokered private placement of subscription receipts.

Key Details

• Rights Offering Size: Up to C$14,871,517 gross proceeds.
• Number of Rights: 1,487,151,720 rights (one right per existing common share).
• Subscription Price: C$0.01 per Rights Share.
• Record Date: November 18 2025; expiry at 5:00 p.m. Toronto time on December 12 2025.
• Standby Agreement: Fiore Management and Advisory Corp. will acquire 100% of any unsubscribed rights under the Basic and Additional Subscription Privileges.
• Closing Timeline: Expected closing around December 15 2025, subject to TSXV approvals and clearance of required personal information forms.
• Post‑Offering Share Count: Approximately 2,974,303,440 common shares outstanding; Rights Shares would represent ~50% of total post‑offering equity.
• Share Consolidation: A 50:1 share consolidation is planned after the rights offering closes (pre‑consolidation basis).
• Private Placement: Company intends a brokered private placement of subscription receipts on a post‑consolidation basis; price per receipt to be determined by market conditions.
• Use of Proceeds: Net proceeds will be used to settle outstanding amounts owed to creditors.
• Contingency: If the private placement does not close as anticipated, Ascot may initiate proceedings under the Companies’ Creditors Arrangement Act (CCAA).

Notable Quotes

• “The Rights Offering provides us with a critical source of capital to address our current debt obligations and positions us for future growth initiatives,” – Jim Currie, CEO and Director.