RE: RNS Convertible Loan Note Update16 Jul 2023 06:39
I think it is worth reminding ourselves about Primorus’ involvement with BMN. This has come about because of their withdrawal from the MUST Enerox ongoing deal. They never intended to become a BMN shareholder.
Interesting to read these paragraphs from Primorus Final Results:
“In February 2022, the Company divested its convertible loan notes ("CLNs") issued by Mustang Energy PLC ("Mustang"), a special purpose acquisition company listed on the Standard list of the London Stock Exchange's main market "Standard List"). Due to Mustang not being in a position to complete its reverse takeover and readmission by the applicable maturity date, Primorus exercised its right to enact the backstop arrangement. Under this provision Primorus converted its CLN into a new CLN with Bushveld Minerals PLC ("BMN").
In 2022, two tranches of the CLN were exercised and the resulting holding of BMN shares were sold into the market. The remainder of the CLN will either be converted or the balance plus interest of 10% repaid in July 2023.”
So Primorus only received CLNs in BMN as a way out of MUST. Primorus clearly needed cash and both previous CLNs were quickly sold into the market. On this occasion it has suited both parties to settle for cash, Primorus because they need the cash as previously and to avoid fundraising and BMN because they can afford it and wish to avoid further dilution.
I note that Primorus have reportedly sold another holding recently (not BMN) to raise cash.
Despite what some may argue this was an ‘amicable’ revision that suits both parties but was only possible because BMN exercised their option to pay cash.
What also should please all BMN shareholders is the focus of the new CEO on the BMN share price and is taking action to support it.
Just my opinion. DYOR
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