30 December
2024
Issue of Convertible Bond and
Warrants
Update on Trading and Financing Discussions
Aterian Plc
("Aterian" or the
"Company")
Aterian Plc (LSE: ATN), the
critical metal-focused exploration and development company,
is pleased to announce the issuance of a
convertible bond and warrants to some key existing shareholders and
the commencement of discussions with a potential partner to expand
its operational and financial capability regarding its trading
business.
The Company has completed the issue
of £150,000 of three-month convertible bonds (the "Convertible Bond") alongside the
granting of associated warrants to existing key shareholders (the
"Warrants"). The
Convertible Bond due on 29 March 2025 is structured to provide
Aterian with short-term funding to support its strategic and
operational objectives while the Company continues discussions
regarding a larger financial commitment. This larger trade finance
package will not be equity dilutive. The issued Convertible Bonds
have a 12% per annum coupon rate and convert into new ordinary
shares of £0.10 each in the Company ("Shares") at a fixed price of £0.70 (70
pence) per share. The Convertible Bond subscribers will receive
231,429 three-year warrants allowing for exercise into an
equivalent number of Shares at £0.70 (70 pence) per Share, as
provided for by the Convertible Bonds' terms.
Additionally, the Company is pleased
to announce that discussions are progressing positively with a new
potential partner regarding operational support and a larger
financing package for the minerals trading business. If
successfully concluded, this financing package is anticipated to
provide Aterian with increased available trading capital, providing
logistical and operational support resources needed to accelerate
its trading growth initiatives. As previously stated, revenue from
trading is ultimately intended to be utilised to advance the
Company's exploration projects and fund operating overheads. While
discussions remain ongoing, the Company is confident in the
progress made to date. Aterian expects to provide further updates
in due course in conjunction with the recommencement of the metals
trading business which is anticipated early in the 2025 new
year.
Mr. Charles Bray, Chairman
of Aterian plc, commented:
"The issuance of the Convertible Bond and Warrants to our
existing shareholders demonstrates the strong commitment of our
shareholders to assist us in reaching our aim to create shareholder
value with minimal dilution while maintaining financial discipline.
The Board views the existing share price as seriously undervalued
and we could not support a new equity issue below our most recent
equity issue price of 70 pence per share. Simultaneously, our
ongoing partner discussions reflect our serious ambitions to
advance Aterian's objectives of having a revenue-generating arm of
the business to fund exploration and overheads and advance
exploration partnerships. We sincerely appreciate our shareholders
continued support and patience in these difficult capital markets
and very much look forward to updating the market as to many key
exploration and trading milestones we anticipate being met in
2025."
- ENDS
-
This announcement contains
information which, prior to its disclosure, was inside information
as stipulated under Regulation 11 of the Market Abuse (Amendment)
(EU Exit) Regulations 2019/310 (as amended).
For further information, please
visit the Company's website: www.aterianplc.com
or contact:
Aterian
Plc:
Charles
Bray, Executive Chairman - charles.bray@aterianplc.com
Simon
Rollason, Director - simon.rollason@aterianplc.com
Financial
Adviser and Joint Broker:
Novum
Securities Limited
David
Coffman / George Duxberry
Colin
Rowbury
Tel: +44
(0)207 399 9400
Joint
Broker:
SP Angel
Corporate Finance LLP
Ewan Leggat
/ Adam Cowl
Tel: +44 20
3470 0470
Financial
PR:
Bold Voodoo
- ben@baldvoodoo.com
Ben
Kilbey
Tel: +44 (0)7811 209 344
Notes to
Editors:
About
Aterian plc
www.aterianplc.com
Aterian plc is an LSE-listed
exploration and development company with a diversified African
portfolio of critical metals projects.
Aterian plc is actively seeking to acquire and develop new
critical metal resources to strengthen its existing asset base
while supporting ethical and sustainable supply chains as the world
transitions to a sustainable, renewable future. The supply of
these metals is vital for the development of the renewable energy,
automotive, and electronic manufacturing sectors, which are playing
an increasing role in reducing carbon emissions and meeting climate
ambitions globally.
The Company recently entered into a
joint venture agreement with Rio Tinto Mining and Exploration
Limited for Rio Tinto to earn into the HCK project in
southern Rwanda to explore and develop a
lithium-tantalum-niobium-tin mining operation. The Company also
holds an exploration licence in Rwanda. Aterian has a
portfolio of multiple copper-silver (+ gold) and base metal
projects in Morocco. In January 2024, the Company announced
the acquisition of a 90% interest in Atlantis Metals. This private
Botswana registered company holds one mineral prospecting licence
for copper-silver in the Kalahari Copperbelt and three for lithium
brine exploration in the Makgadikgadi Pans region.
The Company's strategy is to seek
new exploration and production opportunities across the African
continent and to develop new sources of critical mineral assets for
exploration, development, and trading.