Completion of US$15m Convertible Bond Issue

RNS Number : 0643F

Iofina PLC

20 May 2013

 

 

20 May 2013

Iofina plc
("Iofina" or the "Company")
(LSE AIM: IOF)

Completion of US$15m Convertible Bond Issue

Iofina, specialists in the exploration and production of iodine and iodine specialty chemical derivatives, is pleased to announce that it has completed and entered into the documentation regarding the two year US$15 million convertible bond to be issued to Stena Investments Sarl. ("Stena") (the "Bond")]. As previously advised  the Company intends to use the net proceeds from the issue of the Bond primarily for the accelerated role out of its IOsorb™ plants to increase the rate of production growth and to provide additional working capital to finance trade receivables.  

As previously advised , the Bond will be issued at par by the Company and have an annual coupon of 6.5% payable quarterly in arrears and will be convertible into fully paid ordinary shares of the Company ("Ordinary Shares"). The conversion price was set at a price of [US$3.21 (GBP 2.06 converted into US dollars at the GBP:USD exchange rate as of 3 May 2013) (the "Conversion Price") representing a 10 per cent. premium to the closing price of GBP 1.8725 on 3 May 2013].

Based on the issue size of US$15 million, the Ordinary Shares to be issued upon conversion of the Bond would represent approximately 4,672,897 Ordinary Shares or 3.67% of the current issued share capital of the Company.

If not converted or previously redeemed the Bond will be redeemed at par upon their maturity 2 years from the Closing Date. The Company has the right to redeem the Bonds without penalty at any time at which point Stena may elect to convert or receive repayment.  The Bond can also be converted or redeemed by Stena in the event that the Company is taken over.  The Bonds are not transferable, save for transfers to companies within the Stena group.

Commenting on the closing of the financing package, Iofina's Executive Chairman, Dr. Chris Fay said

"Iofina is pleased to close out the issue of this US$15m Convertible Bond. The Company can now focus on the accelerated role out of its next IOsorb™ plants enabling our current momentum to be maintained. "

About Iofina
Iofina specialises in the exploration and production of iodine, iodine specialty chemical derivatives, produced water and natural gas. Iofina's business strategy is to identify, develop, build, own and operate iodine extraction plants currently focused in North America based on Iofina's WET® IOsorb™ technology. Iofina has iodine production operations in the United States, specifically in Texas, California, Montana, Oklahoma and Wyoming. The Group has complete vertical integration from the production of iodine in the field to the manufacture of the chemical end products derived from iodine to the consumer and the recycling of iodine using iodinated side-streams from waste chemical processes in Europe, North America and Asia. The Group utilises its portfolio of patented and patent pending technology, proprietary methods and trademarks throughout all business lines.

For further information, please contact:

Dr. Chris Fay, Executive Chairman Stuart Eaton, Executive Operations Director            Iofina plc Tel: [phone] www.iofina.com	Ben Colegrave/Chris Sim/Neil Elliot Investec Tel: [phone]
Media Contact: Dominic Barretto Yellow Jersey PR Limited  Tel: [phone]

 

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