Bushveld Minerals Limited (LON:BMN) has issued the second tranche of its £3.5mln of unsecured convertible bonds to UK-based fund, Atlas Capital Markets Limited, and its New York-based joint venture company, Atlas Special Opportunities Limited.
The second tranche was issued on the 18 December 2017, upon receipt of funds by Bushveld. The first tranche of £4.5mln was issued on 22 September 2017.
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The total fundraising now amounts to £8mln of convertible bonds, with denominations of £25,000 each, which bear a coupon of 7.5% per annum and have a maturity date of two years from the date of issuance. The convertible bonds are issued at 98% of face value.
The convertible bonds are convertible into Bushveld shares at a price equal to the average of the lowest five days volume weighted average price determined over the 10 trading days immediately prior to receipt of a conversion notice by the company from the investor.
The investor has agreed not to convert more than 25% of the convertible bonds outstanding during the following periods - from 1 January to 31 March; from 1 April to 30 June; from 1 July to 30 September; and from 1 October to 31 December - subject to certain exceptions.
A total of 4,861,111 warrants over BMN ordinary shares will be issued as part of the second tranche.
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A total of 6.25 mln warrants over Bushveld shares were issued as part of the first tranche. The warrants have a three-year term, a strike price of 14.4p and are exercisable at any time.
The net proceeds receivable from the issue of the second tranche will be applied to further developing Busvheld’s vanadium platforms, as well as providing general working capital.