Electric Royalties Ltd. (TSXV: ELEC) (OTCQB: ELECF) announced that Gleason & Sons LLC has elected to convert C$518,142.23 of accrued interest into 4,505,585 common shares at a conversion price of C$0.115 per share under the company's convertible credit facility.

The conversion is structured as a "shares for debt" transaction under TSX Venture Exchange Policy 4.3 and requires exchange approval. The company expects to issue the shares in June 2026, subject to TSXV acceptance.

The conversion shares will carry resale restrictions for four months and one day under Canadian securities laws and six months under U.S. securities laws from the distribution date.

"Today's conversion zeroes out all interest accrued to date," said CEO Brendan Yurik in a statement announcing the transaction.

Electric Royalties also granted stock options to consultants for 700,000 common shares at an exercise price of $0.14 per share with a three-year term. The option grant requires TSX Venture Exchange approval.

The royalty company maintains a portfolio of 43 royalties across commodities including lithium, vanadium, manganese, tin, graphite, cobalt, nickel, zinc and copper. The company reported receiving royalty payments from production at the Punitaqui copper mine in Chile.

Yurik noted potential developments from expected feasibility study completions at four projects during the second half of the year: Seymour Lake for lithium, Mont Sorcier for vanadium, Graphite Bull for graphite, and Battery Hill for manganese.