29th Apr 2015 10:14
LONDON (Alliance News) - Premier African Minerals Ltd on Wednesday said it has signed a subscription agreement covering 66 loan notes with a total value of GBP1.65 million.
Each loan note has a face value of GBP25,000, the company said, and are repayable at a rate of seven per month from October 1. If not repaid, they will be convertible into Premier African shares at a rate of 90% of the market price at the time.
"The most encouraging aspects of this financing instrument are that there is no shareholder dilution at this time, a real opportunity to repay debt and in so doing, avoid any equity conversion and at the same time, any failure to meet a repayment when due will not constitute a default, but rather a trigger affording a right for noteholders to convert the notes due at that time only to equity at 90% of the then ruling share price," said George Roach, Premier African's chief executive.
Premier African shares were down 16% to 2.00 pence on Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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