Galileo Resources (AIM:GLR), the AIM‑listed company, has entered an unsecured £600,000 convertible loan facility with Sanderson Capital Partners that can be drawn in three £200,000 tranches and converts at a fixed price of 1.00p per share.
The Facility is interest‑free, acts as a standby working capital facility, and carries an initial arrangement fee of 7% to be settled by the issue of 5.42m new shares at 0.775p plus a 5% drawdown fee on each tranche payable in cash or shares at the five‑day VWAP.
"The board of Galileo has put in place a working capital facility with no compulsion to draw down but remains in place for contingencies," Colin Bird, Chairman & CEO, said.
Tranche drawdown windows are £200,000 available from 18 May, £200,000 from 30 July and £200,000 from 15 October, each available within six months of those dates.
The Lender may convert any drawn amount into shares at 1.00p during the facility period, the Company may convert if the share price exceeds 1.40p for five business days, and each tranche is repayable 12 months after advance, with a 5% cash prepayment fee.
On drawdown, the lender will receive three‑year warrants equal to 50% of the amount drawn at an exercise price of 1.25p, and the Lender has agreed not to short sell the Company's shares for the period set out in the facility.
