REG - Aterian PLC - Issue of Convertible Bond and Warrants

AterianAnnouncement

30/12/2024 07:00

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RNS Number : 5339R  Aterian PLC  30 December 2024

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 (http://www.aterianplc.com) or contact:

 

 

Aterian Plc:

Charles Bray, Executive Chairman - charles.bray@aterianplc.com
(mailto:charles.bray@aterianplc.com)

Simon Rollason, Director - simon.rollason@aterianplc.com
(mailto: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 (mailto:ben@baldvoodoo.com)

Ben Kilbey

Tel: +44 (0)7811 209 344

Notes to Editors:

About Aterian plc

www.aterianplc.com (http://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.

 

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