FAQ: Ucore Rare Metals' Convertible Debenture Conversion and Corporate Update

What is the main announcement from Ucore Rare Metals?

Ucore Rare Metals has completed the automatic conversion of the final $1.1 million of convertible debentures issued in May 2020 into equity, resulting in the issuance of 1,222,219 common shares and 611,108 warrants with no debentures remaining outstanding.

Why was the convertible debenture conversion triggered?

The conversion was automatically triggered because Ucore’s shares closed at $2.20 or higher on the TSX Venture Exchange for 20 consecutive trading days, reaching this threshold on September 2, 2025, as specified in the conversion clause tied to the company’s share price performance.

How many shares and warrants were issued in the conversion?

Ucore issued 1,222,219 common shares and 611,108 warrants as part of the automatic conversion of the remaining $1.1 million convertible debentures.

What were the original terms of the convertible debentures?

The debentures were originally issued as 2,800 units at $1,000 each with 7.5% annual interest, later amended in 2024 to mature on January 31, 2026, with a conversion price of $0.90 per unit.

Were any company insiders involved in this transaction?

Certain debentures were held by related parties including Chairman and CEO Pat Ryan, but the transaction is exempt from MI 61-101 minority approval requirements and did not create any new insiders or control persons.

Where can investors find more information about Ucore Rare Metals?

The latest news and updates relating to UURAF are available in the company’s newsroom at https://ibn.fm/UURAF, and the full press release can be viewed at https://ibn.fm/uzheb.

What is Ucore Rare Metals’ business focus and future plans?

Ucore focuses on rare- and critical-metal resources, extraction, and separation technologies, with plans to become a leading advanced technology company providing metal separation products and services, including developing rare-earth processing facilities in Louisiana, Canada, Alaska, and the Bokan-Dotson Ridge Project in Alaska.

What is the significance of this conversion for Ucore’s financial position?

This conversion eliminates all outstanding debenture debt, converts it to equity, and demonstrates strong share price performance that triggered the automatic conversion clause, potentially improving the company’s balance sheet and financial flexibility.