Woodbois Ltd (LON:WBI) said it was converting all the preference shares in its Argento subsidiary into convertible bonds will increase transparency and enable it to "take advantage of the many opportunities ahead".
The Argento Ltd perpetual preference shares, which are redeemable on 30 June 2024 with the option to convert into ordinary shares in Argento, have been changed to convertible bonds set to pay 4% interest per annum.
AIM-listed Woodbois, which produces, processes, and manufactures sustainable African hardwood and hardwood products, has purchased all 75,000 Argento shares in issue.
Chief executive Paul Dolan called the transaction “another important milestone” in the transformation of the company's capital structure.
Dolan added: “The resulting improvement of transparency within the balance sheet will leave the company much more strongly positioned to take advantage of the many opportunities ahead."
Woodbois undertook a project to simplify its corporate structure last year, which included the sale of its agriculture business in Tanzania and a completed cost-reduction plan which took its annual loss down to US$3.4mln from US$5.5mln last year.