Shefa Gems Ltd (LSE:SEFA) announce that it has entered into a convertible loan agreement for gross proceeds of £40,000 on May 1, 2020. The transaction will include participation from Gershon Joel Fraenkel, a director of the company and Rebecca Leah Fraenkel. The loan will bear interest at 5%, is convertible into ordinary shares of the company at a share price of £0.05 per share at any time until March 31, 2020. The lender was to convert their loans into ordinary shares and hold up to 800,000 ordinary shares representing 0.46 per cent of the company's issued share capital following such conversion. After the conversion, the investor will get one unlisted warrant for every share received on conversion, exercisable for a period of 24 months from the date of the conversion, at a price of £0.10 per warrant. If share price during the period 24 months after conversion, does not at any time reach £0.10 per share, the investor will receive additional shares after 24 months in such an amount as to make the total number of shares issued to investor have a value, based on the market price at that time, of £80,000.