Avanti Helium Secures Up to US $10 Million Institutional Growth Financing To Support Its Transition Into Commercial Helium Production And Long-Term Expansion

Avanti Helium Secures Up to US $10 Million Institutional Growth Financing To Support Its Transition Into Commercial Helium Production And Long-Term Expansion

CALGARY, AB, Aug. 24, 2026 /CNW/ -- Avanti Helium Corp. (TSXV: AVN) (OTCQB: ARGYF) ("Avanti" or the "Company") is pleased to announce that it has entered into a definitive investment agreement with RiverFort Global Opportunities PCC Ltd. ("RiverFort") for a secured convertible credit facility with an aggregate face value of up to US$10 million (the "Facility"), subject to acceptance of the TSX Venture Exchange ("TSXV") and the satisfaction of customary closing conditions.

The financing represents an important milestone for Avanti as the Company advances toward commercial helium production. Management believes the Facility establishes a long-term institutional capital platform that provides financial flexibility to execute the Company's near-term development objectives while supporting its broader long-term growth strategy. The initial drawdown is expected to provide the necessary funding to allow the Company to finalize site work and advance the Sweetgrass Project toward production.

The Facility is expected to provide financial flexibility to support Avanti's transition into commercial production while establishing a long-term capital platform to support disciplined growth, strategic infrastructure investment and future expansion as the Company continues to build its industrial gas business.

The Company believes this financing is well aligned with its current stage of development, providing access to institutional growth capital as Avanti advances toward commercial production while maintaining the financial flexibility to pursue disciplined long-term growth initiatives. Helium remains a critical input for the semiconductor, aerospace, healthcare and defense sectors.

Chris Bakker, Chief Executive Officer, commented: "This financing is a pivotal milestone for Avanti and provides the capital we need to deliver first helium production. As we advance toward commercial production, it provides us with the financial flexibility to execute our development plans while also supporting our long-term growth strategy.

We're pleased to be partnering with RiverFort and appreciate their confidence in our assets, our team and our vision for the Company. Our objective has always been to build a sustainable industrial gas business through disciplined capital allocation and long-term value creation, and we believe this financing provides an important foundation for the next phase of Avanti's growth."

Liam Bulmer, Head of Investments at RiverFort, added: "We are pleased to support Avanti with a structured financing solution as the Company advances the Sweetgrass Project toward commercial production.  Avanti has several key building blocks in place, including helium wells drilled, a processing plant secured for transport to site and a foundational offtake agreement (see news release dated August 7, 2025).

We funded Avanti because we believe the Company has a clear, near-term and fully identified path from construction through to production, cash flow and scale. The Facility has been structured to provide capital in stages as the business develops and we look forward to supporting Avanti as it works to bring Sweetgrass into production and build its North American industrial gas business." 

See "Forward Looking Statements" as to the risks and uncertainties of the Company to advance the Sweetgrass Project towards commercial production.

Financing Highlights

• Up to US$10 million (C$13.76 million) secured institutional convertible credit facility, consisting of up to US$8 million (C$11.008 million) of funded capital together with an original issue discount of 20%, being US$2 million (C$2.752 million).  The amounts use an exchange rate of US $1.00 for C$1.376.
• Initial drawdown of US$5 million (C$6.88 million), providing US$3.652 million (C$5.025 million) of funding to the Company, an original issue discount of US $1 million (C$1.376 million), an implementation fee of US $300,000 (C$412,800) and C $65,000 for professional fees, with any additional drawdowns available only subject to mutual written agreement of the parties and satisfaction of applicable conditions.  The amounts use an exchange rate of US $1.00 for C$1.376.
• The funded portion of each drawdown will be convertible at a fixed conversion price equal to a 40% premium to the greater of the applicable five-day VWAP and the applicable market price immediately prior to the drawdown.
• For the initial drawdown, the fixed conversion price will be C$0.756 resulting in a total of up to 6,648,412 common shares issuable to Riverfort.  Only the funded amounts in any drawdown will be convertible into common shares.
• Each drawdown has an 18-month maturity, with monthly repayments of US$384,615 (C$529,230) commencing after an initial six-month period.  There will be no interest accruing under a drawdown.  As a result, the monthly repayments will reduce the face value of the drawdown and applied proportionately to the funded amount and the original issue discount.
• If the Company elects not to satisfy a monthly repayment in cash, RiverFort may convert the applicable repayment into shares at a floating conversion price, which will be determined at the time of settlement and prior approval of the TSXV. Alternatively, in lieu of such conversion, RiverFort may elect to demand an accelerated cash repayment of the missed repayment. Under this option, the Company would be required to pay the missed amount in full within two months, together with an additional 7.5% cash penalty fee.
• RiverFort will receive detachable warrants with each drawdown based on 50% of the face value of the applicable drawdown, with the exercise price determined by reference to the applicable market price. For the initial drawdown, the Company will issue a total of 6,370,370 warrants, exercisable at C$0.54 expiring three years from the date of closing of the drawdown.
• Capital available through staged drawdowns, providing financial flexibility as the Company advances its development plans.
• The Company previously paid due diligence costs of C $25,000 to Riverfort.

The securities issued under the Facility will be subject to restrictions on resale for a period of four months and one day from the applicable date of issue.  Additional details, including the conversion price of the funded amount and the exercise price of the detachable warrants for future drawdowns, will be provided upon announcement of each applicable drawdown.

Riverfort and its insiders are an arm's length party to the Company.  No finder's fees are payable under the convertible credit facility.

All subsequent drawdowns under the convertible credit facility will be subject to the prior approval of the TSX Venture Exchange and the conversion price will be determined at the applicable time.

The financing is subject to acceptance of the TSX Venture Exchange.

Use of Proceeds

The Company intends to use the proceeds from the initial drawdown to complete the remaining activities required to advance its Montana helium assets toward commercial production, strengthen working capital and support general corporate purposes. Following completion of these activities, the Company expects to be positioned for first helium production.

Subject to future drawdowns, the Facility is also expected to provide the Company with access to additional capital to pursue opportunities consistent with its long-term strategy, including production expansion, strategic infrastructure investments and other initiatives within the broader industrial gas sector.

Management remains committed to disciplined capital allocation and intends to deploy capital prudently while maintaining a strong focus on long-term value creation.

Executing a Long-Term Growth Strategy

Avanti's strategy extends beyond the development of a single production asset.

The Company is focused on building a diversified industrial gas business through the disciplined development of its existing assets, strategic infrastructure investments and the evaluation of complementary growth opportunities.

Management remains committed to prudent capital allocation and believes this financing provides an important foundation to support the execution of that long-term strategy.

Project Update

With the Sweetgrass Helium Facility secured, Avanti has entered the execution phase of the Sweetgrass Project. The processing plant has been fully disassembled and is ready for transport to site. Preliminary engineering, site planning, vendor engagement and procurement activities are underway, including facility layout, civil works, building design, foundation planning and tube trailer loading infrastructure.

Construction planning for the plant lease, well tie-ins and gathering system has advanced, while final permitting and regulatory notifications are expected to be completed following the closing of the financing. The Company is also working with the local electrical utility to finalize power infrastructure, positioning the project to advance rapidly into detailed engineering, procurement and construction. These activities are expected to position the Company to move efficiently into construction and support the path to commercial helium production in the coming months.

Early Warning Reporting Disclosure

In connection with the Facility, Mr. Bakker, the Company's Chief Executive Officer and a director of the Company, has entered into a side letter with RiverFort pursuant to which Mr. Bakker has agreed to certain restrictions on the sale, transfer and other disposition of common shares of the Company beneficially owned, or controlled or directed, directly or indirectly, by him (the "Side Letter").

No securities of the Company have been acquired or disposed of by Mr. Bakker in connection with his entry into the Side Letter. Rather, this news release is being issued pursuant to National Instrument 62-104 – Take-Over Bids and Issuer Bids and National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues as a result of a change in a material fact contained in Mr. Bakker's most recently filed early warning report.

An amended early warning report reflecting Mr. Bakker's entry into the Side Letter will be filed electronically with the applicable securities regulatory authorities and will be available under the Company's issuer profile on SEDAR+ at www.sedarplus.ca.

A copy of Bakker's early warning report will appear on the Company's profile on SEDAR+ and may also be requested by mail at Avanti Helium Corp., 1810 - 840 7th Avenue SW, Calgary, Alberta, T2P 3G2, Attention: Chris Bakker or phone at (403) 384-0401.

About RiverFort

RiverFort provides debt and equity-based capital to high-growth companies. As an international business operating in London, Canada, Australia, Europe and Gibraltar, RiverFort has a multi-sector and global orientation. RiverFort prides itself in creating mutually beneficial partnerships between its alternative funding sources, including family office co-investors, and investee companies it believes in. The RiverFort team has executed in excess of US$15bn of growth financing transactions.

About Avanti Helium

Avanti Helium Corp. is advancing the development of its helium production assets in Montana while executing a long-term strategy focused on building a scalable industrial gas business. The Company is committed to disciplined capital allocation, operational excellence and creating long-term value through the development of high-quality industrial gas assets.

ON BEHALF OF THE BOARD

Chris Bakker
Chief Executive Officer

Website: www.avantihelium.com 

Forward-Looking Statements

Certain information set forth in this news release contains "forward-looking statements" and "forward-looking information" (collectively, "forward-looking statements") within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements. These statements reflect management's current estimates, beliefs, intentions, and expectations, and are not guarantees of future performance.

In this news release, forward-looking statements include, but are not limited to, statements regarding the successful closing of the Facility and the satisfaction or waiver of customary closing conditions, the potential availability and timing of future drawdowns under the Facility, the intended use of proceeds, the Company's ability to complete remaining activities at the Sweetgrass Project, the timing of plant transport, site preparation, construction, commissioning and first production, potential revenue generation, future expansion, strategic infrastructure investments and broader industrial gas growth initiatives. The Company cautions that all forward-looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond the Company's control. Such factors include, among other things: the risk that the TSXV does not accept the Facility on the terms disclosed or at all; the risk that closing conditions are not satisfied or waived; the risk that future drawdowns are not agreed or made available; dilution and market risks associated with the issuance of common shares and warrants; risks relating to the expected timing for the development of the helium recovery plant and timing estimates with respect to initial production therefrom; risks relating to the expected benefits to Avanti from the midstream agreement and liquefaction tolling agreement; risks relating to obtaining financing to fund associated infrastructure work for the plant; risks associated with construction, transportation, commissioning, permitting, regulatory notifications, utility infrastructure, cost overruns and supply chain delays; risks associated with helium exploration, development, production, marketing and transportation; volatility in helium prices; risks relating to the Company's ability to access sufficient capital from production and external sources; risks and uncertainties relating to the Company's limited operating history and the need to comply with environmental and governmental regulations. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information. Please see the public filings of the Company at www.sedarplus.ca for further information and risks applicable to the Company.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. 

SOURCE Avanti Helium Corp.