Chaarat Gold's share price increased Thursday after it extended the maturity of its secured convertible loan notes 2021 from October 31, 2021, to October 31, 2022.
The loan notes had a conversion price of approximately £0.371 per share and a 10% interest rate per annum, which increased to 12% per annum on April 30, 2020. The Extension has been approved on the same terms but with an adjusted conversion price of £0.302 per share.Â
Chaarat said the loan notes can be repaid early in cash upon 10 business days' notice.
As of October 31, the principal amount outstanding of the loan notes would have been $19.68 million, plus accrued interest of $6.68 million.Â
If all the Loan Notes convert on their amended terms, around 70.2 million shares will be issued to loan note holders.
Chris Eger, CEO of Chaarat, said: “Chaarat had good discussions with the note holders and is grateful for the continued support with a solution beneficial to all parties. The maturity extension allows the Company to continue its organic and other growth plans.”
Chaarat Gold shares have jumped 6.91% on Thursday to 22.5p.
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