1st May 2020 11:26
(Alliance News) - Shefa Gems Ltd on Friday said it has entered into a convertible loan agreement for USD50,000 with Director Gershon Fraenkel and his wife Rebecca Fraenkel.
The Israel-based gemstone miner said it intends to use this loan for working capital purposes and to fund the continued development of the company.
Shefa said, the 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 2021.
The company said if the Fraenkels decide to convert their loans into shares, they could hold up to 800,000 shares, representing 0.5% of the company's issued share capital following such conversion.
Fraenkel is currently interested in 60,000 shares, representing 0.03% stake.
Shefa said following conversion, it will grant the lender one unlisted warrant for every share received on conversion, exercisable for a period of 24 months from the date of the conversion, at a price of 10p per warrant.
"We are delighted to have the support of our valued director which is a great sign of confidence not only in our company but also in the potential value of the company's stock," said Shefa Chief Executive Vered Toledo.
"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," added Toledo.
Shefa shares were untraded in London on Friday, last closing at 2.00p each.
By Evelina Grecenko; [email protected]
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