5th Nov 2019 14:35
(Alliance News) - Shefa Gems Ltd on Tuesday said it has signed a USD200,000 convertible loan agreement with an undisclosed shareholder.
Shefa Gems, which focuses on gemstone exploration and development projects in northern Israel, plans to use its loan "for working capital purposes and to fund the continued development of its Kishon Mid-Reach project."
The USD200,000 has rolled up interest at 5%, convertible into ordinary share at 5 pence each until March 31. After the loan is converted, Shefa Gems must grant its lender one unlisted warrant per conversion share.
If Shefa Gems's share prices does not hit 10p per share within 24 months of conversion, the lender is to receive further shares so as to issue GBP312,500 worth of shares in total to the lender.
Chair Michael Rosenberg said: "We are very pleased to have secured further funding at the prevailing market price from our supportive shareholder. On behalf of the board, I would like to thank Shefa's existing shareholders for their continued support at this crucial time as Shefa continues to advance its Kishon Mid-Reach project."
Shares in Shefa Gems were untraded in London on Tuesday afternoon at 5.00p.
By Anna Farley; [email protected]
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