Vinanz Ltd (LSE:BTC, OTCQB:VINZF), the Bitcoin treasury company with mining operations in the United States and Canada, said it had repaid a $2 million debt facility by transferring shares from its executive directors to the lender, bringing an earlier investment agreement to an end.
The London main board-listed group had originally signed a financing agreement in May with an institutional investor, allowing for up to $4 million in funding.
Vinanz said it had elected not to draw the remaining $2 million and instead agreed a settlement to close the arrangement.
As part of the deal, executive directors David Lenigas and Jeremy Edelman each transferred just under 5.4 million Vinanz shares from their personal holdings to the institutional investor.
The transfer satisfies the company’s full repayment obligations under the original agreement.
In turn, Vinanz has agreed to issue new shares to Lenigas and Edelman on demand to replace the ones they advanced, under the terms of an arm's-length loan arrangement.
CEO Hewie Rattray said: "The repayment of this facility strengthens our capital position and provides greater flexibility as we continue executing our Bitcoin accumulation strategy.
"We view the debt markets as an important lever for growth and are now well-positioned to pursue more structured, strategic financing aligned with our long-term objectives."