Investor Perman Hadi to grant US$2 million convertible loan to Resources Prima Group

INDONESIAN coal miner Resources Prima Group on Sunday said that it has executed an investment agreement with individual Perman Yadi, who will grant a convertible loan to the company with a principal amount of US$2 million.

The investor was introduced to the company through an acquaintance of Ang Liang Kim, a substantial shareholder of the company.

The convertible loan may be drawn down in tranches by the company following its presentation of a drawdown notice. All usages of the proceeds of the convertible loan must be approved by the directors of the company from time to time, and any expenditure in excess of US$50,000 will require the written consent of the investor.

Subject to approval, the company will convert the full amount of the drawn down convertible loan principal of up to US$2 million into ordinary shares at the conversion price of S$0.001 per share and based on the currency exchange rate of US$1 to S$1.3525.

The conversion price represents a 96 per cent discount to the prevailing market price of the underlying shares prior to the signing of the investment agreement, with 22 June 2017 being the last trading day prior to the suspension of the company's shares on the Singapore Exchange.

Resources Prima Group said that the convertible loan will strengthen its current financial position during this period which is important for the "continuity of the company".

The company will use the available financing for general working capital excluding salary and fees of management and directors, expenses in relation to the joint operation agreement entered into with PT Prima Dharma Karsa entered on 31 March 2019, and other projects undertaken by the company with the approval of the Investor.

The financing will also go into other capital expenditure of the company mutually agreed upon by the investor and the company.

The company has no later than 31 December 2019 to convene a general meeting to seek shareholders' approval for the convertible loan, the issuance of shares after the conversion, and the whitewash waiver.