CoAL to convert $10m YBI loan to equity

Yishun Brightrise Investment (YBI) will soon hold 19.28% of Coal of Africa Limited’s (CoAL’s) share capital, following the conversion of a $10-million loan repayment into equity. CoAL in September 2015 entered into a loan agreement with YBI for $10-million. In May 2016, CoAL and YBI amended the terms of the loan to specify the conditions that would trigger the repayment of the loan. The parties also agreed that if none of the agreed conditions were triggered by the long-stop date of December 31, 2016, the loan amount would be converted into equity at a price of $0.04081 a share.