GSTechnologies Ltd (LSE:GST) shares rallied over 17% in Wednesday’s early deals as the company said it no longer needed its convertible loan facility.
The company, in a statement, told investors it would no longer make the second drawdown under the facility (which would have been for US$800,000).
It follows a management review of the company’s capital requirements, which concluded that the board no longer wanted to retain the facility for utilisation later this year.
GSTechnologies noted that a total of US$285,000 of principal remains outstanding under the facility, from the initial instalment, after the remainder was converted previously into shares.
In London, the small-cap share was up 17.5%, changing hands at 0.42p each.