Elemental Altus Royalties Corp (OTCMKTS:ELEMF) Stock In Focus After Recent News
Yesterday, Elemental Altus Royalties Corp (OTCMKTS:ELEMF) was in the news cycle after the company made a significant new announcement with regards to a new agreement. The company announced that it had gone into an agreement with the Canadian Imperial Bank of Commerce and the National Bank of Canada with regards to a revolving credit facility.
Trading Data
On Thursday, ELEMF stock jumped 1.46% to $0.9375 with more than 7.95K shares, compared to its average volume of 15.04K shares. The stock moved within a range of $0.9375 – 0.9718 after opening trade at $0.9400.
Elemental Altus Royalties Secures up to US$50 Million Credit Facility, Announces Fundraise and Debt Conversion & Repayment
The agreement is going to allow Elemental Altus Royalties to borrow up to as much as $40 million and the figure can then go up to as much as $50 million based on certain conditions. It goes without saying that the development was a significant one for the company at a time when many businesses are struggling with availability of credit.
However, that was not all. There was another significant announcement that may have led to optimism among investors. Elemental Altus Royalties also announced that it had been successful debts to the tune of as much as $27,559,844 into equity. The debt load in question had been owed to La Mancha Investments. Elemental Altus Royalties has already drawn as much as $30 million from the revolving credit facility and had also repaid a loan that had been owed to Sprott Private Lending II.
Key Quote
Frederick Bell, CEO of Elemental Altus, commented:
“This refinancing marks a key turning point in the growth of the business as we significantly lower our cost of capital, while increasing our ability to grow through accretive transactions. By reducing our overall indebtedness, with the repayment of Sprott and the conversion of debt by La Mancha, we are also ensuring the Company continues to generate robust cashflows and is positioned to take advantage through all stages of the cycle. We are grateful for the continued support from our largest shareholder La Mancha who, together with our new lenders NBC and CIBC, share our long-term vision for building the Company into a substantial mining royalty business.”
Technical Data
ELEMF stock is trading below the 20-Day and 50-Day Moving averages of $0.94 and $0.93 respectively. Moreover, the stock is trading below the 200-Day moving average of $1.03.
