Petra Diamonds warns shareholders they need to back $178m rights issue
London — Mining firm Petra Diamonds aims to raise $178m to help cut its debt burden, and warned it could run low on working capital and breach its debt covenants if shareholders do not back the proposed rights issue. Petra, which last month finalised an agreement with its lenders for a waiver of its December 2017 debt covenant and a resetting of debt agreements for this year, said it would offer new shares at 40p. That marks a 35.6% discount to the theoretical ex-rights price of 62.15p calculated in reference to the closing price of its shares on Wednesday. Shares in the London-listed company tumbled as much as 19% after the company’s statement. "If the resolutions to be proposed at the special general meeting are not passed, the rights issue will not take place and the company will not receive the net proceeds from the rights issue of approximately $170m," Petra said in a statement announcing the new share issue. "In such circumstances, the company is of the opinion that the workin...
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