Nio Strategic Metals Announces Debt Conversion Agreements

Core Viewpoint - Nio Strategic Metals Inc. plans to enter into share-for-debt agreements to settle an aggregate of $495,000 of outstanding debt, which will significantly improve its financial position by eliminating debt from its balance sheet [1][4]. Debt Conversion Agreements - Nio has agreed to convert a loan principal of$450,000 from Nio-Metals Holdings LLC into 10,000,000 shares at a price of $0.045 per share [2]. - Additionally, the company has entered into agreements with four current directors and its Chief Financial Officer to convert unpaid service fees of$45,000 into 1,000,001 shares at the same price [3]. Financial Position Improvement - The Board of Directors and Management believe that these agreements will drastically enhance the financial position of the Corporation by eliminating existing debt, except for usual short-term accrued payables [4]. Related Party Transactions - The debt conversion agreement and shares for services agreements are classified as Related Party Transactions under Multilateral Instrument 61-101 [5]. - The Corporation is relying on exemptions from certain requirements of MI 61-101, as the fair market value of the shares does not exceed 25% of its market capitalization [6]. Share Issuance and Hold Period - The issuance of shares is subject to approval from the TSX Venture Exchange, and the shares will be subject to a four-month hold period as per applicable securities regulations [7]. Insider Ownership Post-Transaction - Following the debt conversion agreement, Nio-Metals Holdings LLC will own approximately 45.9% of the issued and outstanding shares, totaling 46,658,211 shares [8].