URU pushes repayment date on Boothbay convertible loan

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.