Business
Completion of US$15m Convertible Bond Issue
Completion of US$15m Convertible Bond Issue.
About this update from Iofina Plc
[{"type":"text","content":"\n \nRNS Number : 0643F Iofina PLC 20 May 2013 \n\n \n \n20 May 2013\n \n \nIofina plc(\"Iofina\" or the \"Company\")(LSE AIM: IOF)\n \nCompletion of US$15m Convertible Bond Issue\nIofina, specialists in the exploration and production of iodine and iodine specialty chemical derivatives, is pleased to announce that it has completed and entered into the documentation regarding the two year US$15 million convertible bond to be issued to Stena Investments Sarl. (\"Stena\") (the \"Bond\")]. As previously advised the Company intends to use the net proceeds from the issue of the Bond primarily for the accelerated role out of its IOsorb™ plants to increase the rate of production growth and to provide additional working capital to finance trade receivables. \nAs previously advised , the Bond will be issued at par by the Company and have an annual coupon of 6.5% payable quarterly in arrears and will be convertible into fully paid ordinary shares of the Company (\"Ordinary Shares\"). The conversion price was set at a price of [US$3.21 (GBP 2.06 converted into US dollars at the GBP:USD exchange rate as of 3 May 2013) (the \"Conversion Price\") representing a 10 per cent. premium to the closing price of GBP 1.8725 on 3 May 2013].\nBased on the issue size of US$15 million, the Ordinary Shares to be issued upon conversion of the Bond would represent approximately 4,672,897 Ordinary Shares or 3.67% of the current issued share capital of the Company. \nIf not converted or previously redeemed the Bond will be redeemed at par upon their maturity 2 years from the Closing Date. The Company has the right to redeem the Bonds without penalty at any time at which point Stena may elect to convert or receive repayment. The Bond can also be converted or redeemed by Stena in the event that the Company is taken over. The Bonds are not transferable, save for transfers to companies within the Stena group. \n \n\nCommenting on the closing of the financing package, Iofina's Executive Chairman, Dr. Chris Fay said\n\"Iofina is pleased to close out the issue of this US$15m Convertible Bond. The Company can now focus on the accelerated role out of its next IOsorb™ plants enabling our current momentum to be maintained. \"\n \n \nAbout IofinaIofina specialises in the exploration and produ...