Avanti Helium Closes First Drawdown of US $5 Million with Riverfort Global Opportunities

Avanti Helium Closes First Drawdown of US $5 Million with Riverfort Global Opportunities

CALGARY, AB, Sept. 4, 2026 /CNW/ -- Avanti Helium Corp. (TSXV: AVN) (OTCQB: ARGYF) ("Avanti" or the "Company") is pleased to announce that it has closed the initial drawdown with RiverFort Global Opportunities PCC Ltd. ("RiverFort") for a total face value of US $5 million (the "Drawdown"). The initial Drawdown was pursuant to the terms of the previously announced investment agreement dated August 24, 2026 whereby Riverfort agreed to provide a secured credit facility with a total face value of up to US $10 million. Additional details of the investment agreement are set forth in the Company's news release dated August 24, 2026.

The initial Drawdown is for a total face value of US$5 million (C$6.88 million), which consists of US$3.652 million (C$5,026,200) of funds advanced 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. 

Should Riverfort choose to convert the funded portion of the initial Drawdown, being US$3.652 million (C$5,026,200), it would do so at a fixed conversion price of C$0.756 resulting in a total of up to 6,648,412 common shares issuable to Riverfort.  If chosen, only the funded amounts in any drawdown will be convertible into common shares.

The Drawdown matures on March 3, 2028, with monthly repayments of US$384,615 (C$529,230) commencing on March 3, 2027.  There will be no interest accruing under the 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.

The Company previously paid due diligence costs of C $25,000 to Riverfort. The above amounts use an exchange rate of US $1.00 for C$1.376.

The securities issued under the Drawdown will be subject to restrictions on resale for a period of four months and one day from the applicable date of issue. 

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

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. 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 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.

The Company also announces that it granted 5,450,000 stock options to certain consultants, directors and officers of the Company. The options are exercisable at a price of $0.455, have a term of five years and may be subject to certain vesting provisions as determined by the board of directors

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.