Tirupati Graphite PLC on Friday said it reached an agreement with noteholders to settle the interest payable in July on its outstanding convertible loan notes through the issue of 1.3 million shares.
The natural flake graphite producer, which has operations in Madagascar and Mozambique, said it relates to two batches of 3.0 million convertible loan notes created in May 2019 and August 2022.
As of June 30, Tirupati Graphite said 2.8 million notes are outstanding across both instruments, carrying 12% annual interest payable bi-annually.
The latest interest payment was due in July 2023, but Tirupati Graphite agreed with the noteholders to find a non-cash payment option to enable the firm’s cash resources to be used to continue to ramp up production at its projects.
After a consultation, it agreed with noteholders to satisfy the July Interest payment by the issue of shares and to increase the interest payment for July to an annualised rate of 16% for the first half of 2023.
‘We are pleased to have reached this agreement with our noteholders and thank them for their flexibility and patience which enabled us to continue the ramp-up of our production at pace. We welcome them to our register alongside our existing investors and are confident that we will soon start to realise the value of the investment we have made this year to increase production rates,’ said Executive Chair Shishir Poddar.
‘We have completed the first phase of our development and remain committed to becoming the leading producer and supplier of natural graphite, primarily for use in Li-ion batteries and the energy transition sectors, outside of China. The energy transition provides huge opportunities to us as we prepare for the next stage of our development.’
Shares in Tirupati Graphite closed down 14% to 16.25 pence each in London on Friday.
Copyright 2023 Alliance News Ltd. All Rights Reserved.