Keras Resources PLC has announced the restructuring of its short-term liabilities incurred in the 2022 acquisition of Falcon Isle into a 4-year loan and convertible loan totaling US$1,525,000. The additional funds will be used for various purposes, including paying consideration due to the vendor of Falcon Isle, severance payment, growth projects, and general working capital. The restructure aims to ensure the company can meet its current obligations without negatively impacting its long-term growth profile.
The funding includes contributions from the Diane H. Grosso Credit Shelter Trust, an associate of 17% shareholder Chris Grosso, with Directors Russell Lamming and Graham Stacey capitalizing outstanding fees due from the company. The funding comprises 4-year convertible loan notes totaling GBP 597,805 and 4-year promissory notes totaling US$762,500. The directors have the authority to issue shares for cash up to a maximum nominal value of £165,000.
The restructuring will be completed in two tranches, with Tranche 1 using existing authorities and Tranche 2 requiring a resolution at the 2024 AGM. The provision of the convertible loan and loan is considered a related party transaction, and the directors, independent from the transaction, have deemed the proposed terms to be fair and reasonable.
Graham Stacey, CEO of Keras, highlighted the significance of the restructuring, stating that it matches the debt structure to the growth profile of the high-grade phosphate business. He also expressed excitement about updating shareholders on the progress at the newly acquired processing facility in Delta, Utah, as the company moves towards the final commissioning phase of the integrated milling and granulator plant.
The information contained in the announcement is considered inside information and is now in the public domain upon its publication via the Regulatory Information Service.
For further information, visit www.kerasplc.com.