Bens Creek Group PLC (AIM:BEN, OTC:BENCF) told investors that MBU Capital has exercised its right to convert the full outstanding amount under its loan facility into equity.
It comes after an agreement was struck between Bens Creek and MBU, the company’s largest shareholder, as the AIM-quoted firm seeks to ensure it has limited exposure to debt obligations that could impede cash flow prior to its intended start of dividends.
MBU is set to receive £1.7mln worth of Bens Creek shares, priced at 30p per new share, with its shareholding increasing by 23.2mln shares to 213.8mln shares, or 53.67% of the company’s voting rights.
'We are very pleased with our progress to date and our ability to remove substantial levels of debt from our balance sheet which in turn will bring cash flow improvement taking us nearer towards being able to provide a maiden dividend for our shareholders," Bens Creek chief executive Adam Wilson said in a statement.