28th Jan 2020 12:52
(Alliance News) - Shefa Gems Ltd on Tuesday said it has entered into a convertible loan agreement with a new shareholder, which agreed to provide a USD350,000 loan.
The exploration and development company said it will use the financing for working capital purposes and to fund the continued development of the company.
Shefa said this loan, together with rolled up interest at 5%, is convertible into shares of the company, at a price of 5 pence each, at any time until the end of March 2020.
The stock was untraded in London on Tuesday afternoon, last quoted at 3.50p each.
Following conversion, the company said it will grant the lender one unlisted warrant for every share received on conversion. These warrants will be exercisable for a period of 24 months from the date of the conversion, at a price of 10p per warrant.
Shefa said if its share price prior to conversion does not reach 10p, it will then issue additional shares to lender, to ensure the total number of stock issued has a value of GBP536,000.
"We are pleased to receive the support of a new valued shareholder. The additional cash resources will support the company's working capital purposes, in addition to supporting the development of our project in the Kishon Mid-Reach area," said Chair Michael Rosenberg.
By Evelina Grecenko; [email protected]
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