Cauldron Energy Ltd (ASX:CXU) has received a $500,000 loan facility from Director Qiu Derong to assist the company with short-term working capital requirements.
The key terms of the loan facility are as follows:
- an 8% per annum interest rate, with a default rate of 20% per annum;
- a term of six months; and
- that it is repayable in cash or by the issue of fully paid ordinary shares at a price of $0.07 per share, subject to shareholder approval.
The conversion price of 0.7 cents per share was determined as a 25% discount to the 30-day volume-weighted average price (VWAP) covering the period from June 27 through to August 5, 2022.
Under the terms of the agreement, Cauldron will call a general meeting of shareholders in order to vote on the conversion of the new loan to shares at a price of $0.07 per share.
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