#Canada #Toronto #TSX Venture #Power Nickel #Chilean Metals

Power Nickel Inc. Shareholder Update

Power Nickel Inc., a Canadian exploration company, recently conducted its Annual General and Special Meeting (AGSM) on November 22, 2024, wherein shareholders approved a pivotal arrangement. This arrangement entails a spin-out of its Golden Ivan property and certain exploration assets in Chile to a wholly owned subsidiary, Chilean Metals Inc.

Key Developments

On November 27, 2024, this arrangement received final approval from the Supreme Court of British Columbia. As the company anticipates that this arrangement will take effect around January 31, 2025, it is essential for shareholders to stay informed about the processes involved in exchanging their existing shares for new ones.

Upcoming Share Exchange Process

Shareholders of Power Nickel will have the following two kinds of holdings:
1. Registered Shareholders: Those who have their shares registered directly in their name.
2. Non-Registered Shareholders: Those whose shares are under the name of an intermediary, like a brokerage or bank.

For Registered Shareholders

Registered shareholders will receive a Letter of Transmittal from the company's transfer agent, Endeavor Trust Corporation. This letter facilitates the exchange of existing Certificated Shares for new shares in Power Nickel and Spinco, the newly designated subsidiary. Here’s how the exchange will work based on the holding format:

• - Certificated Shares: These shareholders must return their share certificates along with a completed Letter of Transmittal to receive new share certificates or Direct Registration System (DRS) advices for both New Power Nickel Shares and Spinco Shares.
• - Uncertificated Shares: Those holding shares in DRS format will automatically receive DRS advices for their new shares without the need for a letter of transmittal.

For Non-Registered Shareholders

The procedure for exchanging Non-Registered Power Nickel Shares will involve intermediary protocols. These shareholders will receive their allocations of New Power Nickel Shares and Spinco Shares via their brokerages based on established relationships between intermediaries and the Depositary. Non-Registered Shareholders will have the option to either keep the Spinco Shares pooled in a trust account or request that they be registered in their name.

The Importance of the Upcoming Arrangement

This restructuring is expected to enable Power Nickel to streamline its operations and focus more effectively on the core business of exploring potential high-grade mineral resources. Alongside this share restructuring, Power Nickel has committed to transparency in communication and engagement with its shareholders.

In light of trading concerns, the company has also highlighted issues of improper trading activities and has been proactive in discussing measures with regulators and stakeholders to safeguard shareholders’ interests. The presence of naked short selling and its potential impacts on share price performance have prompted Power Nickel to lead an industry-wide initiative aiming for regulatory reform.

Moving Forward

Power Nickel’s management is dedicated to maintaining clear communication with shareholders about the arrangement and its implications for their investments. They have encouraged shareholders to watch informational videos and stay updated on regulatory discussions influencing their future investments.

In addition to operational updates, Power Nickel has engaged in marketing campaigns with Native Ads, Inc. and Empire Marketing Ventures to raise awareness about its activities and strategies moving forward. Both firms will play a critical role in expanding the company’s digital presence and visibility among potential investors.

In conclusion, Power Nickel Inc. is embarking on an exciting journey that involves significant changes in governance and operation aimed at enhancing shareholder value in the long run. Shareholders are encouraged to actively participate in the exchange process and educate themselves on their investment to navigate this transition smoothly.