2023-12-01 19:40:06
(Alliance News) – Tirupati Graphite PLC said on Friday it has reached an agreement with bondholders to settle interest payable in July on its outstanding convertible loan bonds through issue of 1.3 million shares.
The natural flake graphite producer, which has operations in Madagascar and Mozambique, said this concerns two batches of 3.0 million convertible loan bonds created in May 2019 and August 2022.
As of June 30, Tirupati Graphite said 2.8 million bonds were outstanding for the two instruments, carrying an annual interest of 12% payable twice a year.
The last interest payment was due in July 2023, but Tirupati Graphite has agreed with bondholders to find a non-cash payment option to allow the company to use its liquidity to continue growing the production of its projects.
Following consultation, Tirupati Graphite has agreed with the bondholders to settle the July interest payment through issuance of shares and to increase the July interest payment at an annualized rate of 16 % for the first half of 2023.
“We are pleased to have reached this agreement with our bondholders and we thank them for their flexibility and patience which has enabled us to continue ramping up our production at a sustained pace. We welcome them on our books, alongside our current investors, and we are confident that we will soon begin to realize the value of the investment we have made this year to increase production rates,” said Shishir Poddar, executive chairman of the board of administration.
“We have completed the first phase of our development and remain committed to becoming the leading producer and supplier of natural graphite, primarily for Li-ion batteries and energy transition sectors, outside of China. Energy transition offers us huge opportunities as we prepare for the next stage of our development.”
Tirupati Graphite shares closed 14% lower at 16.25 pence each in London on Friday.
By Greg Rosenvinge, Alliance News Senior Reporter
Comments and questions to [email protected]
2023 Alliance News Ltd. All rights reserved.
1701463989
#Tirupati #settle #interest #outstanding #bonds #issue #shares #December #p.m
