Rivalry has wrapped up its strategic review with two major moves. The company has secured fresh funding through a private placement and restructured a large portion of its outstanding debt. The Rivalry debt restructuring marks a turning point as the firm looks to free up resources for growth.
Rivalry will raise up to CAD 5.52m (ca. EUR 3.38m) through a non-brokered private placement, issuing more than 110m units at CAD 0.05 (ca. EUR 0.03) each. Each unit includes one subordinate voting share and one warrant, exercisable at CAD 0.10 (ca. EUR 0.06) over 24 months. The first tranche is expected to close around October 8, pending TSXV approval.
A strategic family office has already committed CAD 4.1m (ca. EUR 2.5m), subscribing for more than 82m units. Proceeds from the financing will support corporate development and working capital. All shares issued under the placement will carry a four-month hold period under Canadian securities law.
On the debt side, Rivalry struck a settlement with its senior lender covering CAD 12.5m (ca. EUR 7.7m) of existing obligations. That debt will be exchanged for over 250m new units priced at the same CAD 0.05 (ca. EUR 0.03) level. This move leaves about CAD 8.48m (ca. EUR 5.2m) still outstanding under the company’s secured debenture.
The debenture terms are also being amended, extending maturity to November 2028 and pausing interest payments until the end of 2026. The conversion price has been set at CAD 0.10 per share (ca. EUR 0.06). Rivalry confirmed that shareholder approval for the creation of a new control person has already been secured by written consent.
With the debt restructuring, the senior lender becomes a control shareholder under TSXV rules. The company expects the restructuring to close alongside the financing, subject to approvals. “With this financing and debt restructuring, Rivalry emerges stronger and better capitalized,” said CEO Steven Salz.
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