Petra Diamonds sees strong shareholder support for refinancing plan

(Sharecast News) - Petra Diamonds has announced that its recently announced fundraising plan has received strong support from shareholders, though shares fell sharply after a strong surge earlier this month. The company said it has secured more than 99% of noteholder support for the refinancing announced on 8 August, greater than the 90% threshold needed.

Meanwhile, four additional shareholders have shown their support for a recently announced equity backstop agreement, with backstop providers now representing 69% of Petra's issued share capital.

The additional shareholders include both interim joint CEOs Vivek Gadodia and Juan Kemp.

Additionally, a company owned by chair José Manuel Vargas has committed to underwrite up to $2.45m of entitlements not taken up by other shareholders.

Petra said it expects to complete the refinancing in the fourth quarter, subject to a number of conditions and approvals.

The stock was down 14% at 17p on Friday afternoon, but still remains up over a third over the past month.