(Alliance News) - Technology Minerals PLC on Monday announced its entry into a convertible bond facility, secured against its stake in Recyclus Group Ltd.

Shares in Technology Minerals were trading 7.5% lower at 1.30 pence each on Monday morning in London.

The London-based battery metals and recycling firm said it has agreed with CLG Capital LLC to issue up to GBP5.0 million in floating rate 24-month convertible bonds.

The convertible bond facility, Technology Minerals said, is secured against its 48.35% shareholding in Recyclus. It will draw down two tranches totalling GBP1.0 million for general working capital "during the ramp up" at Recyclus's lithium-ion battery recycling plant in Wolverhampton, England.

Technology Minerals said it has the right to draw down two further tranches totalling GBP1.0 million before it completes the proposed reverse takeover of Recyclus. The takeover was announced in October 2022, and Technology expects to complete the deal in the first quarter of this year.

Technology Minerals also said it has extended multiple convertible loan notes, issued in July to raise GBP500,000 "from a long-term shareholder", to July 4 this year. The conversion price has decreased to 1p per share from 1.8p previously.

"We are pleased to enter into this facility with CLG and we look forward to their ongoing support as a long-term funding partner," said Chief Executive Officer Alex Stanbury. "The fundraise will further strengthen our position and support the company's growth during an exciting period."

Stanbury commented that the Recyclus takeover is "progressing well", adding: "The commencement of commercial operations with revenues coming through, alongside other key milestones achieved over recent months, has given us an excellent foundation for a successful 2024 and beyond."

By Emma Curzon, Alliance News reporter

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