US Consortium confirms fully-funded recapitalization of Sherritt at C$0.12/share

UNITED STATES CONSORTIUM CONFIRMS FULLY-FUNDED RECAPITALIZATION PROPOSAL FOR SHERRITT INTERNATIONAL AT C$0.12 PER SHARE -- WITH PARTICIPATION RIGHTS FOR ELIGIBLE EXISTING SHAREHOLDERS

PR Newswire

Consortium of a United States anchor investor, Kyma Capital, Trifon Natsis and Glencore confirms it has offered a funded and inclusive recapitalization proposal providing significant equity capital, shareholder participation and relevant industrial capability, with a credible path to the stakeholder consents required for implementation. The Consortium calls on the Board to engage without further delay.

TORONTO , Aug. 10, 2026 /PRNewswire/ -- The United States Consortium (the "Consortium") — now comprising a prominent United States anchor investor ("US anchor"), Kyma Capital Limited ("Kyma Capital"), veteran global financial markets investor Trifon Natsis, and Glencore Ltd. ("Glencore") (LON: GLEN) today confirms that it formally submitted a comprehensive, non-binding recapitalization proposal (the "Proposal") to the Board of Directors of Sherritt International Corporation (TSX: S) ("Sherritt" or the "Company") on June 26, 2026. The Proposal has been before the Board since that date. The Consortium is making this announcement so that Sherritt's shareholders, noteholders, employees and other stakeholders can assess the Company's alternatives for themselves.

On August 7, an Ad Hoc Group representing a majority of the outstanding principal amount of Sherritt's 9.25% 2031 Notes publicly disclosed the key terms of a recapitalization proposal submitted to the Company by a consortium of strategic and financial investors and called on the Board to engage immediately with all credible alternatives. The Consortium confirms that the proposal disclosed by the Ad Hoc Group is the Proposal described in this announcement.

The Proposal provides:

New equity at C$0.12 per share — a market-reflective price with no discount to Sherritt's unaffected share price as of May 19, 2026, in contrast to the discounted structure publicly disclosed as the basis of the Gillon Capital proposal;

Partial participation rights for eligible existing shareholders — eligible shareholders will have the opportunity to participate pro rata in a portion of the new equity issuance at the same C$0.12 per share price as the Consortium, reducing the dilution that would otherwise result from a closed control placement;

A fully-funded transaction with no third-party debt financing condition — equity commitments from Consortium members, supported by equity commitment letters or equivalent instruments delivered at signing of definitive documentation, and a structure designed to provide a credible path to the noteholder support required for implementation;

While not conditional, the Proposal provides the ability to unlock additional financing from the existing noteholders, contemplated in combination with equity commitments from the Consortium;

Clear control and ownership structure through a U.S.-domiciled acquisition vehicle which, in the aggregate, will hold at least 55% of the Company on a fully diluted basis at completion; and