The chief financial officer of Shefa Gems Ltd (LON:SEFA), David Ben David, is investing US$50,000 (£38,290) via a convertible loan made out on the same terms as a previous loan of US$200,000 announced in November 2019.
This loan is in addition to another previous loan made by David in March. The loan, together with rolled-up interest, will be repayable in 24 months but will be convertible at 5p per share at any time during a period of 24 months from the date of issue. The loan will be non-transferable.
Following conversion, Shefa will also grant David 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 10p per warrant.
In the event that the company’s share price during the period 24 months after conversion does not at any time reach 10p, David will receive additional shares after 24 months in such an amount as to make the total number of shares issued to him have a value, based on the market price at that time, of £76,580.
“We are delighted in this investment which demonstrates the confidence that our CFO has in the company,” said Michael Rosenberg OBE, chairman of Shefa Gems.
–Corrects loan conversion price per share–