Business
USD20m Fund Raising
USD20m Fund Raising.
About this update from Petra Diamonds Limited
[{"type":"text","content":"\n Petra Diamonds Ld\n19 September 2006\n\n19 September 2006\n\n\n\n Petra Diamonds Limited\n\n US$20 million Interest Free Convertible Bond Issue\n\n\nPetra Diamonds Limited ('Petra' or 'the Company' or 'the Group'), the AIM-quoted\nand ASX-listed diamond mining group, announces the issue of a US$20 million\nunsecured, interest free convertible bond ('the Convertible') as well as the\ngrant of accompanying warrants over 2 million Petra shares ('the Warrant'), both\nconvertible or exercisable at an exercise price of 130 pence per Petra share.\n\n\nThe Convertible and Warrant agreements were concluded on 18 September 2006 and\nhave been issued to Al Rajhi Holdings W.L.L. ('Al Rajhi'), a member of the Al\nRajhi group, a major Saudi Arabian based investment group.\n\n\n\nHighlights:\n\n\n\n • The financing will strengthen Petra's treasury without burdening the\n Company with further interest bearing debt and without diluting existing\n shareholders at the current market price\n\n\n\n • Petra will now have the flexibility to act quickly on potential growth\n opportunities, such as acquisitions or investments in other diamond mines or\n related businesses\n\n\n\n • The Convertible is unsecured and interest free, repayable by Petra 36\n months from the date of issue if not converted\n\n\n\n • The Convertible is convertible by Al Rajhi into Petra shares at a price of\n 130 pence per share - representing a 24.2% premium to the 30 day average\n Petra share price\n\n\n\n • Petra has granted Al Rajhi Warrants over 2 million Petra shares,\n exercisable at a price of 130p per share\n\n\n\n\n\nAdonis Pouroulis, Petra's Chairman, comments: 'This convertible bond financing\ngives Petra the ability to actively consider revenue and production growth\nopportunities that have the potential to fast-track Petra's development and\nfurther entrench the Company as a true mid-tier diamond producer. The financing\nwill also serve to underpin our treasury should we decide to expand our\nexploration interests and exercise our warrants as part of the Xceldiam\ncooperation agreement. We are confident that the growing relationship with Al\nRajhi will only assist in Petra achieving its long term objectives.'\n\n\n\nDetails of the Convertible and Warrant\n\nThe Convertible is unsecured, interest free, and is convertible at the election\nof Al Rajhi int...