(Alliance News) - Pathfinder Minerals PLC on Friday said it intends to conditionally issue a GBP175,000 convertible loan note.
The natural resources company said the loan note has six months term from the date of the first tranche being received by the company, which is expected to be June 1, with a 16% coupon on an annualised basis.
In total, at the end of the six-month term, the convertible loan notes will have an aggregate principal plus accrued interest balance of GBP184,359, Pathfinder said.
Interest will be payable on the maturity date either in cash or in new shares at a price of 0.6 pence each, the company said.
In addition, Pathfinder said 29.2 million warrants will be issued, which will have an exercise price of 0.6p a share. The warrants, if not exercised, will expire after two years from the date of the forthcoming general meeting, which will take place prior to the end of April 2021.
Chief Executive John Taylor has agreed to subscribe for GBP25,000 of the convertible loan note.
"The participation of new and existing investors in this convertible debt financing is a vote of confidence in the strategy that the Board has been pursuing," said Taylor.
"Despite the ongoing global challenges, it is encouraging that the company has been able to raise further financing in the current climate, with the potential equity conversion being at a premium to the current share price," added Taylor.
Pathfinder shares were trading 3.2% higher in London on Friday at 0.49p each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Pathfinder Minerals (PFP)