Technology Minerals PLC (LSE:TM1) has announced its entry into a £5 million convertible bond facility with CLG Capital LLC.
The agreement sees the company issue up to £5 million of convertible bonds.
It plans to initially draw down two tranches totaling £1 million from the facility, primarily for working capital purposes at Recyclus' lithium-ion battery recycling plant in Wolverhampton, in which Technology Minerals owns a 48.35% stake.
Further tranches totaling £1 million are available before the completion of the proposed reverse takeover of Recyclus.
"We are pleased to enter into this facility with CLG and we look forward to their ongoing support as a long-term funding partner,” chief executive Alex Stanbury said in a statement.
“The fundraise will further strengthen our position and support the company's growth during an exciting period.
“With our proposed acquisition of Recyclus progressing well, operations continue to ramp up at its industrial scale lithium-ion battery recycling plant, while there has been good progress through the commissioning phase at the lead acid battery recycling facility.
“The commencement of commercial operations with revenues coming through, alongside other key milestones achieved over recent months, has given us an excellent foundation for a successful 2024 and beyond."
The conversion price of the bonds will be set at 95% of the average volume weighted average price preceding the conversion.
Technology Minerals has also extended its existing convertible loan notes to 4 July 2024, with a revised conversion price and terms. The company has also made a limited-time offer to warrantholders to exercise their warrants at a reduced price.