17th Jul 2024 21:43
Vela Technologies PLC - early stage-focused technology investor - Enters into transferable unsecured convertible loan note agreement with Liberia-focused gold exploration and development company Hamak Gold Ltd. Hamak to issue Vela GBP300,000 of Hamak unsecured convertible loan notes, at interest rate of 10% per year, redeemable in July 2026. Accrued interest to be paid upon maturity or conversion. Notes may be converted with accrued interest into Hamak shares at the lower of a 25% discount to the volume weighted share price five days before conversion, or at 3.00 pence per share. As part of agreement, Vela will issue 2.42 billion shares to Hamak at 0.012 pence each, a 7.6% premium on Vela's July 16 share price. Vela may not submit a conversion notice for six months after signing. Hamak to redeem GBP75,000 of the notes through monthly cash payments between GBP10,000 and GBP25,000 with first payment due July 31.
"The investment in the loan notes has been made by Vela in line with the opportunistic investments category of the company's stated investing policy. The investment does not meet the core criteria of the company's investment policy, which is focused on the disruptive technology sector, but, in accordance with the constraints of this investment category, it comprises less than 5% of the company's net asset value and is intended to be held for the short term only," Vela explains.
Hamak Executive Director Karl Smithson adds: "This investment agreement allows Hamak to enter into a transaction with potential uplift in value for the company's shareholders."
Vela current share price: 0.010 pence
12-month change: flat
Hamak current share price: 1.06 pence
12-month change: down 88%
By Aidan Lane, Alliance News reporter
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