Iofina (LON:IOF) has agreed a two year extension of a US$15mln convertible bond held by Stena Investment, and it will now mature on May 15 2017
The company has also been able to reduce the coupon it pays on the debt. The interest will now be paid at 6% per annum rather than 6.5%.
Conversion into equity can take place at a price of US$1.67, which based on current exchange rates means the conversion would be at a 27% premium to the current share price of 77.75p.
''Iofina is pleased to enact these bond modifications, which provide the company with longer term financing and enhanced financial flexibility as it focuses on the build out and efficiencies of its production plants, increasing iodine derivative sales and securing customers for raw iodine product," said chief executive George Lantz.