Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.
Bushveld Minerals (LON: BMN) shares have declined Wednesday after the company announced the final terms for the repayment of the $11.5 million unsecured convertible loan notes held by Duferco Participations Holding S.A.
The remaining balance of the Duferco convertible notes was due for payment on 8 November. However, since then, the company has progressed in negotiations with Duferco, confirming that an agreement has now been reached.
On November 8, Duferco will convert $9 million of the principal outstanding under the loan notes into new ordinary shares of Bushveld, with Bushveld repaying the $2.5 million, together with accrued interest on the notes of approximately $0.512 million in cash, to Duferco.
Fortune Mojapelo, CEO of Bushveld Minerals, stated: “I am pleased that Duferco will convert US$9 million of the principal outstanding under the loan notes into Bushveld Minerals shares, which will reduce our debt position significantly while also making a material reduction at the net debt level given that most of the repayment will be made using Bushveld shares.”
Bushveld shares are currently down over 1% at 9.92p on the news, falling as low as 9.7p earlier in the session. At the end of September, the company's shares fell after making a loss in H1.
Bushveld Minerals shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are Bushveld Minerals shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies
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