GEM raised new capital through an issue of 8mln new shares priced at 5 Canadian cents per share and, at the same time, converted some C$270,500 via a debt-for-equity swap.
Mosman, in a statement, noted that it has now capitalised C$50,000 of its loan to GEM, as part of the swap, and, consequently it holds 1.76mln GEM shares representing around 9% of the company. And, the remaining C$50,000 debt to Mosman has been repaid.
Looking ahead, GEM is now continuing towards its objective of securing an interest in a new project.
“Mosman is encouraged by this development and looks forward to the next step in GEM's revitalisation,” the company said.
Mosman executive chairman John Barr is interim chief executive at GEM, and, following the debt-for-equity swap he will own around 7% of GEM.