URU pushes repayment date on Boothbay convertible loan

(Sharecast News) - URU Metals has extended the repayment date for its convertible loan from Boothbay Absolute Return Strategies, it announced on Tuesday, to 28 February. The AIM-traded firm said Boothbay also agreed not to convert sums due under the convertible loan note into URU Metals shares before 31 January.

First announced on 6 May 2020, the convertible loan note's maturity date has been extended multiple times by mutual agreement.

As of 29 December, Boothbay had provided URU Metals with a total of $0.5m.

If URU Metals failed to repay the loan by the maturity date, conversion of the note would occur at a 35% discount to the volume-weighted average price (VWAP) per share in the five trading days before the noteholder serves a conversion notice, on completion of an equity fundraising by URU Metals at a 35% discount to the price per share paid by investors in that fundraising round, or during a share sale transaction at a 35% discount to the price per share paid during the share sale.

Additionally, if Boothbay received new shares as part of a conversion of the loan note, it would be granted one warrant for each new share issued.

The warrants would have an 18-month exercise period from the date of issue and could be exercised at 85p per share.

Reporting by Josh White for Sharecast.com.