Greenwing Resources (ASX:GW1) has emerged with no secured debt and about $9.5 million in cash and security released over its assets following an overhaul in its funding arrangements.
The overhaul consists of an equity placement of $2.7 million, which includes ‘strong’ participation from directors of $325,000, an up to $1 million undrawn loan facility provided by Chairman Rick Anthon, and the conversion of about 68% of its $4.2 million convertible notes into equity.
The offer price for the new ordinary shares to be issued is $0.225 per share in which 12 million new shares will be issued under the placement and conditional placement. The offer price represents a 1% premium to the last closing price of Greenwing’s shares on 18 July 2023 (being the last trading day prior to the announcement of the equity raising) and a premium of 1.5% to the 15-day VWAP.
Shareholder approval is required for the conditional placement and a shareholder meeting will be convened in early September 2023
Shareholder approval is required for the conditional placement and a shareholder meeting will be convened in early September 2023.
Boutique corporate advisory firm BW Equities is managing the equity raising.
Greenwing had on issue unlisted convertible notes with a face value of about $4.2 million which matured on 30 June 2023. The convertible notes were originally issued in 2019, and the terms of issue (as amended) provide that each note converts into 0.32 ordinary shares (effective conversion price of $0.25), matures on 30 June 2023, and has an interest rate of 12% per annum payable half yearly in arrears, which may be settled at the company’s election by the issue of ordinary shares issued the value of a 30-day VWAP. The Notes are redeemable at maturity unless converted prior.
Some 68% of noteholders (representing face value of approximately $2.8 million) accepted this offer, which will result in about 11.3 million shares being issued on conversion of the convertible notes, plus an additional 0.28 million shares and 5.65 million options being issued as incentives to convert.
Greenwing is an Australia-based critical minerals exploration and development company committed to sourcing metals and minerals required for a cleaner future.
With lithium and graphite projects across Madagascar and Argentina, Greenwing plans to supply electrification markets, while researching and developing advanced materials and products.
The company is continuing its development in Argentina at the San Jorge Lithium Project and its portfolio in Madagascar. Greenwing is currently undertaking a maiden drilling program at the San Jorge lithium brine project following the conclusion of a strategic placement to NYSE-listed NIO at $0.55 in January 2023.
Write to Adam Orlando at Mining.com.au
Images: Greenwing Resources Ltd