Queen's Road Capital Acquires Securities of ATHA Energy Corp.

Executive Summary

• Queen's Road Capital Investment Ltd. acquired a US$25 million convertible debenture of ATHA Energy Corp., convertible into 40,152,941 shares at $0.85 per share.
• An additional 1,552,900 ATHA common shares were issued to QRC as payment for an establishment fee.
• If fully converted, QRC would own approximately 10.8% of ATHA’s outstanding common equity, marking a significant new strategic investment in the resource sector.

Key Details

• Debenture principal amount: US$25,000,000 (≈ Can$34,130,000).
• Conversion terms: Each debenture is convertible into ATHA shares at $0.85 per share, yielding 40,152,941 potential shares.
• Establishment fee: QRC received 1,552,900 ATHA common shares as payment for the establishment fee.
• Potential ownership post‑conversion: 41,705,841 total ATHA shares (debenture conversion + fee shares) ≈ 10.8% of ATHA’s issued and outstanding common shares.
• Prior holdings: QRC held no securities of ATHA before this transaction.
• Purpose: Acquired for investment purposes; QRC may acquire additional ATHA securities, dispose of existing holdings, or retain the current position depending on market conditions.

Notable Quotes

(No direct quotes were provided in the release.)