LONDON - Aterian Plc (LSE:ATN) has announced a subscription agreement with an existing shareholder for £100,000 of unsecured zero-coupon convertible loan notes as part of a strategic refinancing.
The notes convert into new ordinary shares at 25 pence per share by December 31, 2026, at the holder's election or automatically otherwise, resulting in 400,000 new shares.
Proceeds will be used for loan repayment and general corporate purposes. The company says the financing reduces interest expense and provides flexibility while minimizing near-term cash outflows.
In connection, Aterian will issue 200,000 Series 29 warrants (50% warrant coverage). The warrants expire on February 15, 2028, with an exercise price of 32.5 pence per share.
Executive Chairman Charles Bray stated the financing strengthens the balance sheet. He noted the Rwandan business aims to generate cash flow to support exploration.
Aterian is an Africa-focused critical minerals exploration, development and trading company.
