Answer
The press release does not give a single, fixed calendar date, but it makes clear that the company expects the recapitalization to be completed “in the near‑term” – i.e., within the current fiscal year (2025). The language used by FLINT’s board (“the Recapitalization is intended to preserve value for the Company’s shareholders and better position FLINT to execute on future growth opportunities”) and the fact that the announcement was made on 7 August 2025, together with the description that the transaction is already being executed under a definitive “Support Agreement,” indicate that the parties anticipate closing the transaction within the next few months, most likely before the end of 2025.
How the transaction will be funded
The recapitalization will be financed through the Support Agreement that FLINT has entered into with its largest shareholder and primary lender, Canso Investment Counsel Ltd. The key points about the funding structure are:
| Funding element | Description (as stated in the release) |
|---|---|
| Primary source of capital | Canso, acting as portfolio manager for certain accounts it manages, will provide the financing needed to execute the recapitalization. |
| Debt‑reduction component | A significant portion of the existing debt will be retired, which will lower the Company’s annual interest expense. |
| Capital‑structure simplification | The transaction will streamline FLINT’s balance sheet – likely by converting a portion of the outstanding debt into equity (a typical debt‑to‑equity swap in a recapitalization) and by issuing new equity to replace the retired debt. |
| Liquidity improvement | By reducing the debt load and interest out‑goings, the Company will free up cash flow that can be used for growth initiatives. |
In short, the funding will come from Canso’s commitment under the Support Agreement, which will supply the cash and/or equity needed to retire existing borrowings, refinance the balance‑sheet, and provide additional liquidity. The exact mix of cash, new equity issuance, and any debt‑to‑equity conversion is not detailed in the excerpt, but the overall financing strategy is anchored on Canso’s support and the company’s plan to replace a large share of its debt with a cleaner, equity‑based capital structure.
Take‑away points
- Completion timeline: Expected “in the near‑term,” i.e., within the remainder of 2025 (likely before year‑end).
- Funding source: Primarily the Support Agreement with Canso Investment Counsel Ltd.
- Funding mechanics:
- Debt reduction (pay‑down of existing borrowings).
- Liquidity boost from lower interest costs.
- Capital‑structure simplification through equity issuance or a debt‑to‑equity swap, all under Canso’s financing umbrella.
- Debt reduction (pay‑down of existing borrowings).
These elements together are designed to preserve shareholder value and position FLINT for future growth opportunities.